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Politics : Formerly About Advanced Micro Devices

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To: Joe NYC who wrote (100783)3/29/2000 5:08:00 PM
From: tejek  Read Replies (1) of 1575113
 
Maximum loss to the longs. For every long position, there is a short position, and the short holders have to act somehow prior to the expiration. They need to close their positions, or get into some kind of covered situation. And it is the action of the shorts that sometimes moves the price closer to MaxPain number.

Then Joe, I don't understand. When someone is shorting and has to cover, usually the stock price goes up. From what you are saying in options, its different....that the action of the shorts causes the price to go down.

In addition if MaxPain is $30 now and was $40 last month...its looks as if investors have become bearish re AMD. Given the news coming out, you would sentiment would be just the opposite.

ted
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