Good after evening gg gorilla gang, i got ta start out the video by saying. Oh, it is tough. Being a vikings fan. I tell you what that's probably the first time that i've seen uh a game-winning field goal work out like that, for the vikings and probably my entire life.

I don't know it's been a long time way past what my memory can recollect, but nonetheless, today i want to talk about options pinning i want to talk about the maximum pain theory uh, specifically amongst the stock market, because this is something that i see happen. Very very frequently and most apparent is in amc stock and i think there's a lot of people out there. I mean, i don't even think i just know, because you look at the options market on amc and it is so active all the time. The derivatives market on this is so active uh.

You can kind of get an idea of how this can be used against retail and those who are playing the derivatives markets, so we're gon na go over a couple different things here. I wan na go over what options pinning is i wan na go for maximum pain theory. I'm gon na show you a visualization of this and then i'm gon na apply it to this week's price action and what you can actually look at to get an idea of what exactly i'm talking about here in regards to the best way that you can protect. Your own capital, but before we get into it, what is up everybody on the trades trade? Three freaking talk faster, don't give class.

I compose if i say that i'm gon na find advice from they're going to save the great assault, let's get into the video. So today, my friends, my family, my fellow gang - i want to start off here with this article right here. It's called the max payne definition and to have an understanding of what this is essentially think of it as options. Market makers, right we'll be looking at the options or derivatives chain on any given day and they're going to look at where the most open interest is.

They essentially want to see hey. Where can we inflict the most pain? Where can we make the most bang for a buck, collect the most premium on any options and make them expire worthless? And if you were to look at amc, for example, on this, you can look at the calls. You look at the puts and have an idea of exactly what i'm talking about. So, for example, this week i would say that the two biggest max paying spots to watch for would be the 40 strike and then, secondly, that 45 strike - and what i mean by this is there - is a habit amongst market makers to want to pin the price Action to a specific price level, so they can have the most options, expire worthless as possible.

I'm going to talk about the way that you can actually prevent this from happening to you if you do choose to play options nonetheless, but that is that is something that uh does exist, the max payne theory. You look at the put side of things right with that b. That'd be the 34 strike because in the same way that they want the calls to expire worthless, they also want puts to expire worthless. So if we were to have a bearish week, for example, an amc went down to 34 dollars max payne level is gon na, be that 34 strike.

They want to hover it at the money or close to out the money for these puts so they can have those people there with those 10 000 open interest to potentially hold those strikes into expiration, so they expire, worthless, fun fact, most people that hold an option Into exploration end up losing not only some of it, but almost all of it, and that is built by designed to be that way, and that is the max payne theory. So, to put it into words, max payne or the max paying price is the strike price or the most open options contracts? It is the price of which the stock would cause financial losses for the largest number of options holders at expiration. So it is the goal. Think about it as two sides here: you've got the you've got the freaking lines and you've got the vikings.

It's the goal of the lions, essentially to hold the vikings to that max payne theory, which would be potentially today's game right. In this case, the officers market makers or the lions lost, but nonetheless their goal is to make them think they still have uh some morsel of hope, so they can keep driving it down and then, in the end, end up winning the game. Now, maybe that's a bad example, but nonetheless you get my point here. They want to keep you enticed.

They want you to hold that contract into exploration because it is close to at the money or in the money, but it's not quite there. That is the point of the max payne theory, and this comes into what i would call pinning the strike strike ping now. What is this? It goes hand in hand with that max payne theory. What they want to do is pin the price of any given stock near at or very close to in the money of that specific security.

So, in the case of amc right, let's just look at last week's price action. What ended up happening on friday? Well, you can see that this ended up closing off at about 37.19 but intraday. If you look at the price action, those options. Market makers give you this morsel of hope.

Thinking hey. I could end up actually making this run. I bet you money. There was a crap ton of 40 strikes on this heading into expiration on last friday, and this huge run up right.

You got this huge run from 37. Up to almost 39 gave people that morsel of hope i'd be willing to bet you there's some people that bought weekly expirations, just based on this huge freaking run-up right here from 37 30, all the way up to 38.78 and people got stuck in that and the Max payne theory kicks in they. Let this thing gravitate there for a while: they let it hover it hovers, it hovers it hovers and then it ends up selling off at the end of the day. So the max pay in this case, since the calls are the most accurately traded derivative on amc, was likely close to that 38 to 40 range and those ended up expiring, worthless.

That's options pinning so that is the the acting of market makers and any big firm who is actively trading options on the market to try and pin stock price in a specific area. Now this is not me telling you to stay away from options, because you can make money on options. There are lots of people that do it, but i think an important thing to note is holding into expiration is almost never going to work right. You're gon na have that one out of ten two out of ten times where holding an exploration you do get it right.

Where you get the right strike and stock ends up going ballistic goes parabolic and you make a crap ton of money, but these are designed by the casino for you to lose. Now, of course, there is an edge that you can beat right, but it's not very often so if you are going to play options, it's important to recognize these max payne areas. So here's a visualization of that. If you look at max payne for calls on amc, for example, this is just something that i drew up uh.

It does happen to coincide pretty well. It would just happen to be 45 dollars instead of 46. But let's just look at the calls for next week. Right 45 is a max paying area.

17 000 total open interest on a 45 dollar strike and then 40 has 10 000.. So a better visualization of this would potentially be if this was 40. But nonetheless, you can see that there's an increasing amount of open interest right. It continues to go up, go up, go up, go up and market makers will recognize this.

So a max payne area for calls on this given week would be that 45 to 46 dollar range. They are going to pin it at that specific level, because that's where they're gon na include the most amount of premium they're trying to essentially milk, the freaking nips out of any freaking heifer. That decides they want to play these weeklies and they take the money from that, and not only does that happen right, but you end up just losing it. You, you piss that that into the abyss i mean.

There's there's not much. You can do about that because that's the way the system is built, it's built to take advantage of those expirations on calls and or puts right. So what can you do to prevent this sort of thing? That's probably the most important thing here. Well, first off you have to understand options, there's lots of videos out there.

I've got a couple. There's other people out. There have great freaking information on how options work, but secondly, there's two parts to this. First off you have to be able to manage risk right.

Take the emotions out of any sort of options play and specifically with a squeeze play like amc where who knows when this thing's gon na make a big move because of this exact thing right this this pinning theory, this max payne theory, the options pinning right if You're going to play options on amc, don't hold it into expiration, right, you're, just risking all of your capital, because if it goes into expiration and it's not in the money, you lose everything. It's 100 loss right. That's not what you want to put yourself into uh. That's not a situation you want to put yourself into at all.

That's like that's like getting slapped by your grandmother. I want to get slapped by the grandma i'll. Tell you what not this chicken, not this chicken at all. So what can you do to prevent that? Don't hold options into expiration? I i really cannot stress that enough.

The the casino their edge continues to grow the longer that you hold the contract. So if a contract goes green, you see a reversal start to happen. Take your profits on that contract because calls and puts are entirely different from stock. They do expire, they do experience time decay and you can lose value because the house will try - and you i mean that's just as simple as it gets and you've seen this time and time and time and time again with amc right.

Let's just look at these weeklies this week. What would possibly have been? Let's just look at last week, for example. Last week they gave you this. This freaking hope that the stock was going to go absolutely nuts because of this huge major run-up i'd be willing to bet you.

There were people out there who saw this huge run up to 41.50 rejected right and they ended up buying in somewhere in this area. For some calls, and then it just ended up continuing to consolidate slightly pull back into the week right and those calls ended up, expiring, uh, potentially worthless, and that is max painter. That's options pinning that strike pinning to its very core. So be careful right.

I don't want people out there to be losing money if you don't know what you're doing with options. This is not me saying, don't play options right. You just have to know what you're doing and holding into expiration is almost always a death wish. I don't want that, for you guys, so just be careful right unless you plan on exercising your calls, in which case you've already likely been holding leaps anyways, which much much less risk to yourself as the individual party, with a leap unless you plan on exercising.

There's really no point of holding an expiration right. Take your profits, buy some stock. Do whatever you want to do, but just don't lose your money guys be careful. Keep keep uh, keep diligent and, most importantly, that money you make from an option, buy something lemon pap.

Attendees, you know what it is all right. That's what i've got for you guys so catch y'all, the next one blah blah blah. You know spiel drop like consider. Subscribing to my friends.

I don't care. If you do, i don't care if you don't but much love get to the next one. Peace.