Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: tejek who wrote (98839)	3/17/2000 4:24:00 PM
From: d e conway	Read Replies (1) \| Respond to of 1571031

<< So much for Max Pain.....AMD closed over $50 >> I see 50-1/8...about as close to 50 as you can get. regards, Dan

To: tejek who wrote (98839)	3/17/2000 4:47:00 PM
From: kash johal	Read Replies (1) \| Respond to of 1571031

Ted, re: MAx-Pain The best way to think of the pressure as building up as the price deviates from the max pain point. For example if AMD had gained 2-3 dollars today by mid day I would have sold my calls and waited for the pullback. However there wasn't much pressure to go up so stock traded sideways. regards, Kash

To: tejek who wrote (98839)	3/17/2000 5:30:00 PM
From: Cirruslvr	Respond to of 1571031

Ted - RE: "So much for Max Pain.....AMD closed over $50." So Niceguy got what he wanted?

To: tejek who wrote (98839)	3/17/2000 6:26:00 PM
From: Petz	Read Replies (2) \| Respond to of 1571031

ted, here's another way to think of max pain. Imagine that "max pain" graph that kash (I think) linked to a few days ago. It had a minimum at 40, had kind of a flat bottom and got very steep towards the right. Oh, here's the link:http://www.ez-pnf.com/maxpain/mp303.htm If you dropped a marble onto the $49 point, it would drop to 40. But someone has put peanut butter on the marble, so it would take a while to get there. Then, someone lifted the whole chart and tilted it to the right. This person is not Jerry Sanders, no, this tilt is because AMD is oversold and undervalued. No matter what the tilt is, the marble will still try to stop at one of the inflection points, which are the strike prices on the graph. Its only near expiration that the max-pain makes any difference. Most of the time you can imagine that the graph is a 1/4" high and 8" wide, and the tilting due to market forces is much more important than the "marbles" "pain." (BTW, Paul is standing on the right hand side of the chart trying to tilt it to the left, because he lost his marbles and wants them back.) Petz