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Strategies & Market Trends : Classic TA Workplace

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To: ajtj99 who wrote (44941)	7/9/2002 10:59:58 PM
From: yard_man	Read Replies (1) of 209892

I was poking fun -- a lot of interpretaqtion hinges on definitions. I suppose you have tracked daily OI in the enough strikes to see that the max pain that you talk about 2 - 3 weeks out doesn't move appreciably as you approach expiry? Have you done any real quantitative study, is what I am asking? I am, of course dissing it without, having done any myself -- I've just seen max pain fail very close to expiry with the indices a few times If you've got data to support your thesis I would love to see it -- especially if you have daily max pain and know when it begins to be correlated with levels at expiry. Obviously there are reasons to think that max pain would hold when price movements are more smooth -- but clearly, it has little bearing or predictive value for rapid movements; it fails for individual stocks all the time. If I ever figure out how to pull data from the CBOE site, I am going to study this.

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