Dale,
The Max-Pain point says $75 on Friday. INTC isn't there. You can look back at the INTC April and MAy Max-Pain graphs. Max-Pain is a second order effect ie external forces like breaking news, upgrades/downgrades, Greenspan, can cause momentum that swamps out the natural 'drift' that Max-Pain is trying to observe/study.
My comment said that based on the value of the open interest, if INTC doesn't go to $75, a lot of money will flow from option writers to option buyers. However, the options Market Makers(the writers), as they have in the past when there wasn't momentum to overcome, will exert upside pressure on the stock price to $75 to minimize the total value of the open interest. In this vein, Tom K, as some suspect, might just issue a statement that would make the MMs jobs a lot easier......
Stop in at the web site and look at the various stocks in the MAx-Pain study and see if they have historically tracked to the Max-Pain point.
Ben A.
ez-pnf.com |
