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To: mishedlo who wrote (172033)6/12/2002 1:04:14 AM
From: KeepItSimple  Read Replies (1) of 436258
 
but "max pain" changes every day, depending on options activity.

how do you determine which date of options positions to look at when you "confirm" that max pain has been correct?

do you look 3 weeks from expiration? 3 days?

if there is no methodology, the measurement is useless. simply saying max pain works because on the day of expiration the stock price falls between the troughs of puts and calls is bullshit.. that is simply a function of exponential increases in leverage the farther OTM you go in either direction.
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