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......
Ben, I am keenly aware of the shenanigans that WS is capable of, but you really nailed it. I would like to commend you on a stupendous call. I think we have a good chance at moving up to 75. Dale |
