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Strategies & Market Trends : Zeev's Turnips - No Politics

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To: Zeev Hed who wrote (80270)6/17/2002 11:18:21 PM
From: mishedlo  Read Replies (3) of 99280
 
Entering into last week, the QQQ max pain was close to $32 or higher, it has come down, but much more than I thought it would

Yes you called the drop and it was huge. From 37 or so a few weeks ago now to 30. That is why one must hold off on max pain plays to the final 7-10 days. Long at the bottom on Friday would have done it (but I did not). What is amazing is people keep refering to put call ratio as if it matters. It is the end result that matters and that end result has taken Max Pain down substantially on the QQQs.

As for INTC and MSFT (MSFT is acting as if max pain is really 55 not 50). Are there zillions of covered calls out there making da boys long the calls? INTC has to be delta hedging but still I would assume the powers that be want it as high as possible. Is 25 in the cards?

M
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