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Strategies & Market Trends : Waiting for the big Kahuna

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To: James F. Hopkins who wrote (29276)9/28/1998 9:00:00 PM
From: Robert H.  Read Replies (1) of 94695
 
RE: >the max pain kick<

You're on to something. The last expiry was a classic example of the max. pain theory. The gyrations of the OEX the last few days before expiry caused the Max. pain to both calls and puts. As a holder of both I'm still counting the wounds.

Interesting that you should mention this indicator; as I have just started working on same.

I recall that it was the very low volume days preceding option expiry when the market moved as if was determined to end on the max. pain point. ...I watched this move day by day and couldn't believe that this could be happening. ...How could someone manipulate the market.???

After the news of the last few days; Big Boy Hedge Funds, I'm beginning to actually believe this scenario.

Good luck with the indicator.

Robert

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