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GameStop Corp (GME)

NYSE
Symbol
Exchange
Currency
GMENYSEUSD
GMEaTradeGateEUR
GMEViennaEUR
Currency in USD
Disclaimer
10.31
+0.01(+0.10%)
Closed
Pre Market
10.26-0.05(-0.48%)

GME Comments

Did Max Pain predict the GME spikes in March and June (and briefly Sept) though? I'm curious. I think Max Pain is more predictive of VIX which is strictly an options price average anyhow
Thanks for your response JeffB
Max Pain ... Use it as a gravitation point to QUICKLY grasp a price point of ALL call and put options open interest. KNOW where it is for assessing RISK in your trade. In GME, we'll see some HUGE OI way out the money, and we need to discount that somewhat as just BIIIIIG MONEY premium selling, usually hedge funds against their underlying position. So, with GME, which is an ideal trader, we can use the MONTHLY, or WEEKLY Pivot retracements, along with the MAX PAIN to get a much better feel for what the OPTIONS MARKET MAKER must do in order to #1 Make a market in the options (primary job), then #2 either be long, or short inventory based the the HUGE BETS that are placed in the options market. The Max Pain is the "general" OBLIGATION the option market maker has. If stock BUYERS (demand), or SELLERS (supply) is too strong and certain LARGE open interest become in the money, then it FORCES the hand of the options market maker to do something. Tearing away from a Max Pain ... that was a HUGE part of the first squeeze in GME, via Robinhood. So many retail were buying calls back then, Robinhood didn't have the capital to cover the settlements, and it exaccerbated the move higher. Remember when VIX rose on GME squeeze? Now, there is no tie. Actually, a retail GME bull from $400 is what brought me here. For when the hedge came off.
That trader never made the adjustment and burried themselves in the VX and UVXY and GME. Burried as in kept averaging down. One of the basic no no of trading and investing. Totally disregarded the important roll that options play, especially when it comes to HEDGING RISK.
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