Formerly About Applied Materials Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Formerly About Applied Materials

AMAT 261.90

+0.4%

Dec 26 9:30 AM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: mitch-c who wrote (50757)	8/18/2001 12:58:25 PM
From: Robert O	Read Replies (1) of 70976

re: I look at the max-pain number as a predictor of a range, not a price. Basically the underlying stock will close between (one option step lower < max-pain < one option step higher). This month, that range is 42.5 < 45 < 47.5. AMAT barely stayed in the range at 42.57. Therefore, Max-Pain worked as a predictor. Shazam, mitch, you're too kind, really. Your range gives another 11% of underlying price latitude. Are you and Ben A. in cahoots or something? <g>. Consider that Ben updates the Max-Pain [TM] charts on Wen. so going into the Friday expiry you already are getting a solid number. To allow your range (in order to offset 'noise' effects?) is too grand. I think Ben's idea here is novel, but allowing +1/-1 of closest strikes doesn't pass the Z-test. Regards, RO

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next