Dmart

We are going to discuss on Concept of Max pain for options and Gap theory of big player position, also can be known as market positioning.

first let discuss on What is Max pain and how to interpreter this concept of Max pain

Max pain level for Option buyer vs Option seller :
Max pain is a level where a Short seller is present and will try to defend his position not to enter into loss, as we should be aware that a Short seller is strong than a buyer with respective on capital deployed and when a short seller position is compromised he has to run for a covering his position where we see a movement based move but this should be monitored. this may give better returns mostly on expiry days.

Gap theory Big player vs uninformed trader :
Many of us think if a gap is filled we feel as its now becomes support as we study gaps act as support and resistance, we have a different approach for gaps and it's types. Particularly for this session i would like to tell when a gap is formed with a gap down and no immediate filled scenario happens indicates a foot print of an institution/Big player positions which act as resistance.

My observations in this stock is that untill there is a shift in max pain level and a cross over one should remain cautious with respective of Max pain and stock price with consideration of other parameters, because nothing is holy grail in market. Expect the unexpected is majority times proven, but these are one of the tools which gives some direction for time being.

This is just few insights even i may be not sure. Just View not a Reco...