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Technology Stocks : Lucent Technologies (LU)
LU 2.550+2.0%11:21 AM EST

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To: ALTERN8 who wrote (2584)5/8/1998 12:12:00 AM
From: Ben Antanaitis  Read Replies (1) of 21876
 
Altern8,

I think that there may be a stalling, or even a slight decline, in LU price for the next week. I just prepared an analysis of the MAY'98 open interest for LU and it shows that the MAx-Pain point for LU MAY'98 options holders (and most gain for LU MAY'98 options writers) is at $70. This effect seems to attract a stocks price on the option's expiration day. I call it the Max-Pain point.

If you want to see the graphs, and an explanation of the theory, use the Max-Pain link in my SI profile.

Ben A.
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