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Technology Stocks : Lucent Technologies (LU)
LU 2.605-2.1%Feb 2 3:59 PM EST

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To: The Phoenix who wrote (6990)4/2/1999 12:17:00 PM
From: Techplayer  Read Replies (1) of 21876
 
Gary,

I honestly have not used the Max Pain as a benchmark but recently noted that several posters use it as guidance. Being in both stocks, I decided to look at CSCO. I could see either stock pull back to 100 again, but it would be a surprise to see CSCO pull back to 90 given the visibility, growth, market condition, % of institutional ownership, IP hype (and surrounding facts), etc. The market would need to have a real correction in line with a 10-20% reduction.

How much weight is actually put on the max pain by options traders? Has it historically provided an accurate benchmark of stock movements?

Since you have already done the analysis, can you say why you see LU's max pain at 95?

Thanks,

brian
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