Indecisive IWM - Big Thrust in GDX MF -April 19, 2012

[DJones]

Options holders’ maximal pain for opex tomorrow is at 82 so we must be wary of attempts by market makers to close the week near that level. Hence, the bias is bullish for opex and we may need to wait until next week to reap the rewards of our patience if not stopped out at 81.63 and in the absence of the cash or buy signals discussed by Pascal in his “comment of the day” article.

Billy, I'm curious if you ever adjust your stops based on maximal pain numbers.
Thanks

[Billy]

Billy, I'm curious if you ever adjust your stops based on maximal pain numbers.
Thanks

In a word, NO. There is nothing in MaxPain that demands the closing price on expiration day to be at the MaxPain point. It is just a bias to be aware of making abstraction of all other market’s driving forces.
Billy