Josh BeckmanMax Pain is an urban legend-slash-theory from the options market, in which certain people are betting on a price to go up and others are betting on it to go down, yet it somehow finds a way to do neither, instead converging on the place where most peopleâs bets expire worthless, regardless which side theyâre on. In this metaphor, âPainâ means both losing money and not knowing what to do, even though you had a reasonable assessment of the future when you started. Max Pain means, even when youâre right, youâre wrong; it describes a climate in which everyoneâs opinion is right at some point, but never at the right time.
FROM:nemesis.globalMax Pain