wascilly wednesday, page-130

sik....as you know, mm make their money during options expiry by taking the market at a price that the majority aren't expecting. the maximum pain calculator is a great easy way of tracking this. i like to use it as a contrarian indicator - it doesn't aways work but it does provide a good gauge along side my other indicators. for example, while most were bearish last week/early this week, max. pain indicated that spx options would expiry at about 1350. yesterday, the calculator had the spx at about 1310 - suggesting that most were now bullish.

as i said earlier yesterday afternoon, the spx was at resistence and wasn't able to break above. that, along with the max. pain calculator was my cue to go short and close out of longs.