Strictly: Drilling II Message Board

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Strategies & Market Trends : Strictly: Drilling II

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To: gold$10k who wrote (10572)	4/10/2002 7:24:22 AM
From: Louis V. Lambrecht	Read Replies (1) of 36161

vt - MaxPain, FWIW MaxPain ™ Ben Antanaitis, Jr ez-pnf.com Basically he calculates the product of open interest by the premium on the options paid. Then graphs the cumulative total of the puts and the calls. The intersection of the curves is the MaxPain Point™. May gold options futuresource.com have an expected strike of $290. at wich the maximum premiums are collected by the option writers. Other authors don’t take the premiums into account and calculate the strike at which open interest only has the maximum OTM contracts. This would be $295. They also call this method the maxpain. A third pack of analysts only look at peak open interest: calls peak o/I is 305, put peak o/I is 290. These analysts will say that the price will close between those two peaks.

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