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Strategies & Market Trends : Gorilla and King Portfolio Candidates

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To: shamsaee who wrote (28370)7/19/2000 9:58:35 PM
From: Uncle Frank  Read Replies (1) of 54805
 
>> The market tanks pretty hard every month on option expiration week. Is this a coincidence or have you also seen this pattern in the past also.

I think it would be more accurate to say that the market is volatile during options expiration weeks, as in good times (which are faint memories at this point) it often soars.

There is a creative theory that, since most options expire worthless, a stock will gravitate towards a price that will lose the most money for the universe of investors that are in puts and calls. This is called the the maximum pain options analysis technique, or just Max-Pain™. You can read up on it at

ez-pnf.com

To make it even more fun, there is a max-pain calculator, which is a great help in figuring out how to lose money in creative ways <gg>.

iqauto.com

uf

btw, none of this really works, but it will keep you off the streets <lol>.
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