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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?


To: kash johal who wrote (98767)3/16/2000 9:29:00 PM
From: crazyoldman  Read Replies (1) | Respond to of 1570814
 
Hello Kash,

Looks like from the activity on this thread tonight that we're all suffering from max pain.

Kindest regards,
CrazyMan



To: kash johal who wrote (98767)3/16/2000 9:58:00 PM
From: tejek  Read Replies (1) | Respond to of 1570814
 
Kash,

I have never understood what is meant by MaxPain. Can you explain?

Thanks.

ted



To: kash johal who wrote (98767)3/17/2000 1:51:00 AM
From: eplace  Respond to of 1570814
 
Kash....re:ALL option players:
AMD Max pain is at $40/share.

Somebody, maybe it was you Kash, posted this a few months back. While it is an interesting theory (I've followed it now for three or four months), it is just that. I do think it does have some credence but for the record:

December's max pain point: 22.50 stock finished at 28 13/16

January's max pain point: 30.00 stock finished at 37 7/8

February's max pain point: 37.50 stock finished at 40 1/4

It is interesting to note that three to four weeks out the max points were lower than they finished (must of had something to do with the rising stock price). So while the March point is currently at 40, I doubt the stock will get anywhere close to that number. Maybe 43 at the worst.

From a similar site, for those of you who like to worry, April's number has been as low as 25 as recently as two weeks ago, and has inched up to 30 just recently. This could imply that AMD might move up all the way till earnings and fall back towards the end of options expiration in April. Meanwhile the max pain point for April could rise as high as 45 or 50 by options expiration.
So if AMD were to hit 45 or lower in the next two or three days, I'll probably buy back the April calls that I sold in the 50's. This is because of what I see in the charts as a support area.

Good luck all.
Ed P.