Formerly About Advanced Micro Devices Message Board

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Politics : Formerly About Advanced Micro Devices

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To: tejek who wrote (98839)	3/17/2000 6:26:00 PM
From: Petz	Read Replies (2) of 1571068

ted, here's another way to think of max pain. Imagine that "max pain" graph that kash (I think) linked to a few days ago. It had a minimum at 40, had kind of a flat bottom and got very steep towards the right. Oh, here's the link:http://www.ez-pnf.com/maxpain/mp303.htm If you dropped a marble onto the $49 point, it would drop to 40. But someone has put peanut butter on the marble, so it would take a while to get there. Then, someone lifted the whole chart and tilted it to the right. This person is not Jerry Sanders, no, this tilt is because AMD is oversold and undervalued. No matter what the tilt is, the marble will still try to stop at one of the inflection points, which are the strike prices on the graph. Its only near expiration that the max-pain makes any difference. Most of the time you can imagine that the graph is a 1/4" high and 8" wide, and the tilting due to market forces is much more important than the "marbles" "pain." (BTW, Paul is standing on the right hand side of the chart trying to tilt it to the left, because he lost his marbles and wants them back.) Petz

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