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Pastimes : Home on the range where the buffalo roam

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To: Walkingshadow who wrote (8611)1/8/2001 12:45:50 AM
From: Seldom_Blue  Read Replies (1) of 13572
 
Very interesting post. I have often wondered about the max pain theory, but I have seen little evidence to suggest it is an effective method to pick the price level. Your research may give us some more insight.

May I suggest you keep an eye on the "max pain" price point in each stock? I have seen those prices change with the market. It will be interesting to see what the market does vs. what the option market thinks. It may turn out that the "max pain" point is invalid two weeks prior to the expiration, but fairly accurate three days prior.

Look forward to your next post.

Seldom Blue
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