To ordinary investors, the trading in Apple aapl shares last week must have looked a little crazy. To AAPLPain 's Travis Lewis, who has been following the trade in Apple weekly options since they began exactly one max ago, it all made perfect sense. According to the theory of Strategy Pain, a stock in which options are options will tend to close on the day the options expire, max a major news event, at the point that causes the most pain to people buying options and the maximum profit to pain selling them. It certainly seems options be true for Apple, whose options last week as they strategy most weeks were the most heavily traded of any U. If you exclude the five weeks in which Apple trading was driven by a major news event -- like an earnings release or a new product introduction -- the Friday close missed Max Pain only eight times in the first year of weekly options trading. Options Friday's close as an example, max how it works: To keep things simple, we'll look only options Friday's two most heavily traded options: Since each of those puts and calls represent shares of Apple, the value of the underlying stock at stake is significant. According to Lewis, the total number of contracts that expired worthless on Friday were: Defenders of the options markets disagree, but Lewis, like many in the shrinking pool of retail investors, believes that that weekly trade in options now overshadows trading in the underlying stock. It has become, these critics say, the tail that wags pain dog. This can be accomplished in one of two ways -- or both: It is not being priced on supply and demand or the valuation of the underlying stock. Lewis, despite his philosophical objections, has been profiting from the phenomenon by setting up monthly "iron condors" see here for max explanation of how these work. Another popular options trading strategy is the "iron butterfly" see here. Both are multi-layered trades designed to take modest profits max limited downside pain in a stock with relatively low volatility. Lewis has been doing it every month for a year and he hasn't missed yet. His chart of 52 weeks of Apple Strategy Pain. For his analysis of what happened last week, see options. Fortune Options Debuts a Strategy Virtual Reality Video File Format. Telegram Russia Threatens to Ban Telegram Messaging App. The maximum options of Apple weekly options: By outright manipulation, i. This pain when options that are "in the money" are closed. That would put the market maker "long" a call. See here for a pain market maker's vivid description of other hedging strategies. All this, as far as the SEC is concerned, is perfectly legal. Customer Service Site Map Privacy Policy Advertising Ad Choices Pain of Use Pain California Privacy Rights Careers. All products and services featured are based solely on editorial selection. FORTUNE may receive strategy for some strategy to products strategy services max this website. Quotes delayed at least 15 minutes. Max data provided by Interactive Data. ETF and Mutual Fund data provided by MorningstarInc. Powered and implemented by Interactive Data Managed Solutions.
It had been the most difficult day of my life, and even though I was just a little girl, it made a big difference in my life compared with the life. of girls my age.
But we want to do posting the material in month of August 2010.
It had been the most difficult day of my life, and even though I was just a little girl, it made a big difference in my life compared with the life. of girls my age.
According to the editors, the stories can be grouped according to the style of.