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submitted 1 day ago by alessandro@lemmy.ca to c/pcgaming@lemmy.ca
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[-] Buddahriffic@lemmy.world 3 points 16 hours ago

One thing to add, prices can be manipulated in the short term to make or avoid certain options from getting into the money. They won't do this to target specific individuals, but there's a value called "max pain", which is the price such that the most puts and calls expire worthless and the ones that are in the money pay out the minimal value, when all outstanding contracts for an equity are considered in aggregate, and prices trend towards those at expiry time.

this post was submitted on 02 Dec 2025
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