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

To: tejek who wrote (100663)	3/29/2000 1:44:00 AM
From: Joe NYC	Read Replies (2) \| Respond to of 1575219

Why is it so low? Its lower than February. The number indicates the strike price that would inflict the maximum amount of pain to option holders. Imagine a scenario where you have a stock, and these options are outstanding: 1 of each: April 30, 35 and 40 call 1 or each: April 30, 35 and 40 put The max-pain number would be 35, because at this price, the payout to the option holders would be the lowest - $10 total, $5 for April 30 call and $5 for April 40 put Now suppose you have: 1 of each: April 30, 35 and 40 call 3 or each: April 30, 35 and 40 put Now the number drops to 30. I wonder how high the open interest in calls is compared to historical numbers. It indicates a lot of bulish investors. The more calls there are compared to putts, the lower the number The Max-Pain number is fairly easy to calculate. You can just load open interest to your Excel spreadsheet and use the solver add-in. Joe