The Wednesday before the week of Options Expiration. I've heard today referred to as Weird Wally Wednesday.
Well, how do you explain PAAS being up 7% and SSRI being down almost 3% on a day with no news for either??
How about the Max Pain level for both issues.
SSRI - $14
PAAS - $26
Hmmm - I wonder if Option Expiration Manipulation had anything to do with today's bizarre trading?
What is Option Pain?
In the option market, wealth transfer between option buyers and sellers is a zero-sum game. On option expiration days, the underlying stock price often moves toward a point that brings maximum loss to option buyers. This specific price, calculated based on all outstanding options in the market, is called Option Pain. Option Pain is a proxy for the stock price manipulation target by the option selling group.
