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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Casaubon who wrote (51529)	5/21/2000 10:34:00 PM
From: Zeev Hed	Respond to of 99985

Casuabon, if we could get some numbers it would be even better. I have been told once that most of the naked writing is done by floor traders, they are the one that also engineers the "max pain" on expiration. When "max pain" was engineered on a given expiry (by either getting the market up or down, typically counter the prevailing trend), then a trading countering the expiry day follows early in the next week, when engineering failed (the market continued in the main trend on expiry), my observation has been that the market in the first few days of the week following expiry continues in the main trend. I believe the second case is in force for the last expiry. If someone has studied this statistically it would be very helpful, my observation should be considered "anecdotal" only. Zeev Zeev