MA is one of the few "way up there in the sky" stocks that has been able to hold onto its earnings report gains but today's selloff brings the gap into play. If MA breaks $180, I think it will close that gap in the next four days by heading to $160 then pin to max pain at $165 or $170 on Friday. Currently, max pain is marginally at $165 ($170 is almost equivalently painful) but that could easily change as option volumes swell closer to the actual expiration on Friday. I'm looking at the 180 and 175 puts for a quick trade. This is a highly risky trade so don't play it with any size!
For more on max pain theory, here is a paper by a professor at the University of Illinois.
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