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Technology Stocks : Dell Technologies Inc.

DELL 133.20

+5.7%

Nov 26 3:59 PM EST

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To: jhg_in_kc who wrote (72587)	10/16/1998 12:26:00 PM
From: Dell-icious	Read Replies (2) of 176387

See the Max-Pain theory by Ben Antanaitis (sp?). Basically on options expiration, market makers would like the most options to expire worthless, so that they have to pay out the least amounts. Thus, stock prices tend to gravitate towards the strike prices where the payout (or "pain") is least. For October, this strike price was 55 (a couple of days ago), but could have gone to 57 1/2 by now. Hence DELL would likely close at one of these two strikes. (Note, this theory doesn't hold in months where DELL reports earnings or the shareholder meeting due to the enormous run-up prior to then which takes the stock price way past the pain point). Dell-icious

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