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Technology Stocks : Apple Inc.
AAPL 261.05+0.3%Jan 13 3:59 PM EST

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To: J R KARY who wrote (23834)4/9/1999 1:55:00 PM
From: JH  Read Replies (2) of 213182
 
Re: AAPL max-pain forecast

On the call side, equilibrium looks like a strike price of between 37.5 and 40, ie. $38.75. The market will have a tendency to settle at a price BELOW this equilibrium price to maximize the number of outstanding contracts expiring worthless.

On the put side, equilibrium looks like a strike price of between 30 and 32.5, ie. $31.25. The mkt will try to drive the price above this price.

Since there are far more OI (open interest) volume on the call side, I predict that if there is no market-moving news, the price of AAPL should be around $37.5 at expiration.

Keep in mind that MaxPain is still a moving target since we have a couple of more days of trading which may alter the balance of OI.
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