El, I saw that the max pain point data was updated as of 10/6 as of a few days ago. Given the trading that has occurred since then with most, if not all of it, to the downside, I would venture to say that we have a lower max pain point today. Maybe that number is closer to 27.5, which would make me very happy with the options I purchased with the stock around this level, maybe half a point off.
After that, you get earnings expectations, and if the funds are done with their window dressing and are eager to hold for the longer term, I would venture to say we could see a rapid accelleration of the equity price beginning around the end of this month. Those funds that sold at the end of October will not be back until early December.
If you recall last year, that is basically what happened. We got a bounce from 18 to 22-23, and then a run up to 27.5 or so in December. Two waves of buying by distinctly different groups.
That is my take, as long as MC has good words to share about the quarter and coming year. That would make the January calls very attractive to me, IMO.
Best, |
