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Technology Stocks : Lucent Technologies (LU)
LU 2.520-1.4%Nov 26 3:59 PM EST

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To: ed who wrote (3930)9/5/1998 10:40:00 AM
From: Ben Antanaitis  Read Replies (1) of 21876
 
Ed,

Thank you for your thoughtful note.

However, I am not examining the ratio of open interest puts and calls.
If you would go to my web page and select the Max-Pain&#153 Options analysis page, there is a link to a complete explanation of the hypothesis and calculation method used in determining the Max-Pain Point&#153. It is definitely not the put call ratio. It is based on the total volume of open interest contracts, and the strike prices they were written at, versus the possible expiration day closing stock price... but the details are in the explanation page.

It is my experience, and it has been show in the historic data graphs available, that the distribution of the open interest across the various strike prices does not change quickly, if at all, during the last month of a contract's life. There is just too much $ inertia built into the spectrum of contracts.

Ben A.
ez-pnf.com

PS If it is just a waste of time... it's my time to waste.
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