America On-Line (AOL) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : America On-Line (AOL)

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Steve Robinett who wrote (29660)	8/20/1999 1:07:00 PM
From: Time Traveler	Read Replies (2) of 41369

Hi Steve, I don't really believe in this MaxPain theory. I look at this MaxPain point as an attractor for the price to converge to under abnormally low volume. It is thus just a probability for the stock to close near the MaxPain point, the lower the volume the higher the probability. Although at the strike price of $100, you see the most call contracts, that does not mean it is the MaxPain point. You have to weigh all the calls and puts of every strike price to arrive at that figure. You can do this using your Excel spread sheet with data taken from quote.cboe.com

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next