Options Market Snapshot - December 26th

Here's what the max pain levels and liquidation map are showing heading into year-end: The options market is pricing in significant range-bound activity, with max pain points clustering around key support and resistance zones. This suggests options traders expect consolidation rather than explosive moves in the near term.

Liquidation cascades remain a concern at certain price levels—both upside and downside liquidation walls show meaningful density that could trigger rapid repricing if breached. The distribution is telling: retail longs appear heavy at resistance, while shorts are concentrated lower.

Traders watching derivatives flow should pay attention to these pain points as price discovery tools. When spot prices approach max pain zones, expect either reversal pressure or breakout attempts depending on whether large players choose to defend or abandon their positions.