calculate_max_pain
Calculate the max pain price for an options expiration to identify the strike price where option holders face maximum loss. Useful for traders anticipating price convergence near expiration.
Instructions
Calculate the max pain price for an options expiration. Max pain is the strike price where option holders (buyers) experience maximum loss, and option writers (sellers) experience maximum profit. Many traders believe prices gravitate toward max pain as expiration approaches.
Input Schema
| Name | Required | Description | Default |
|---|---|---|---|
| symbol | Yes | Stock ticker symbol | |
| expirationDate | No | Expiration date in YYYY-MM-DD format (optional, defaults to nearest expiration) |