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To: Dalin who wrote (71971)5/19/2000 11:28:00 AM
From: Didi  Respond to of 152472
 
Dalin-re: Max-Pain options analysis technique...

ez-pnf.com

Good luck, Dalin.

di



To: Dalin who wrote (71971)5/19/2000 1:48:00 PM
From: Didi  Respond to of 152472
 
Dalin: adt'l info on Max-Pain by ArchAngel, one of the options pros on RG options board.
(Thanks much, Arch ;-).)

<<<di - a couple things to consider:

1. Put vs. call imbalance (the so called MaxPain thesis) will usually only have an impact on stock prices if the minimum open interest valuation price is reasonably close to the current price.

2. Don't forget that the specialists (unlike most retail option traders) are constantly working to minimize the risk of their positions through offsetting and hedging. When the stock price is a long way from the minimum valuation price, the specialists aren't usually sitting there staring at it - they've long since offset/hedged their positions and aren't concerned about it.>>>