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To: Zeev Hed who wrote (49140)10/11/1999 1:36:00 AM
From: Ira Player  Read Replies (1) | Respond to of 53903
 
Be careful of "maximum pain" type indicators.

They are self fulfilling, but not always in the way proponents think.

Watch the action in the options during the last weeks before expiration. Most of the action is near the money options. Out of the money and deep in the money options often have open interest decrease. This gives the impression that the method works better than it does when the "final" calculation is done at expiration. Much of the "pain" at the extremes is taken before the expiration and is hidden from the final tally.

Ira



To: Zeev Hed who wrote (49140)10/11/1999 11:07:00 AM
From: Carl R.  Read Replies (4) | Respond to of 53903
 
Based on the small loss last quarter with ASP's around $5, and with prices now above $10, does anyone care to venture a guess as to MU earnings this quarter? Presumably the cost is down around $4, probably a bit less. If the ASP is $11 for the quarter (mostly OEM, some higher spot sales), what would profits be? Why can't they make $2-3 this quarter?

Carl