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Strategies & Market Trends : Swing Trading With Options

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To: underdog430 who wrote (40)8/22/2001 9:29:00 PM
From: Jerome  Read Replies (1) of 88
 
UD...max pain theories....

Looking at last Friday's expiration.... Flex dropped well below 25. About the first of the month 17 1/2 was considered max pain for CSCO and it closed well below that strike.. AMAT, NVLS, LRCX and a lot of other tech stocks closed well below their maximum pain point.

Its my opinion that when an option or stock has high volume near expiration...(CSCO, DELL, ORCL, INTC), the maximum pain indicator is worthless. It would take too much money to move CSCO or ORCL in any particular direction, and bring it into alignment with a maximum pain point.

Good luck on this thread.....Jerome.
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