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Strategies & Market Trends : MP - Market Pulse

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To: Stephen M. DeMoss who wrote (1234)8/14/2001 12:32:23 AM
From: mishedlo  Read Replies (2) of 1328
 
I bought SEBL at the open and should be able to guarantee a profit.

Yes, I am fully aware that Max pain does not SEEM to work.
The reason I say "SEEM" is because we never really know
1) where the powers to be have hedged their bets
2) who the owners of the puts and calls are (J6P betting against instutional positions will always get killed)
3) Whether or or the Puts or calls were bought or sold.
In other words if all the calls out there are covered calls, then the powers that be that own those calls will want to drive the price higher rather than lower.
On average it all works out BUT THAT IS ON AVERAGE! Obviously there are 2 sides to the trade and for every buyer there is a seller BUT who owns them is very important as well as impossible to tell.
4) The bigger the position, the more it averages out. INTC will close at 30 again (or very near that), I am quite sure.

M
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