Quadruple Witching: Does “Max Pain” Actually Pin Prices?

TradeStation1 month ago52:31

Brandon Wendell, CMT, breaks down why stocks and indexes can appear to get "stuck" near certain price levels as options expiration approaches, and how you may be able to trade it. Two days ahead of September's quadruple witching, which concentrates the quarter's largest options open interest into a single session, Brandon explores the dealer-hedging mechanics behind this "pinning" effect. He’ll also cover the widely discussed but unproven “max pain” theory, and how options traders can potentially position around them using defined-risk strategies, where loss is capped but still possible. Learning Objectives: • Understand how dealer gamma hedging may pull price toward high-open-interest strikes • Learn how to use OptionStation Pro to visualize potential pin levels before expiration • Explore defined-risk setups like iron condors, and credit spreads built around expiration Join upcoming webinars for tips, techniques & strategies: https://www.tradestation.com/learn/events-list/ Options Education Center: https://www.tradestation.com/learn/options-education-center/

Trading stocks, CFDs, spread betting, futures, and options involves a high level of risk and may not be suitable for all investors. Prices can move rapidly, and losses can occur quickly and exceed your expectations.