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Technology Stocks : Echelon Corporation (ELON) -- Ignore unavailable to you. Want to Upgrade?


To: ahhaha who wrote (2328)6/15/2000 2:01:00 PM
From: tuck  Read Replies (1) | Respond to of 3076
 
ahhaha,

Re: max pain

The number of shares influenced relative to the float has nothing to do with it. It's how much money the market makers have to gain by having the calls and puts they sold to hedge expire worthless. That number of contracts could well be enough for a decent living, month in and month out. This is the theory, at least. In reality, open interest often reflects other forces at work, too. So in general, max pain is a factor at most. But in specific stocks one can sometimes see it happen more frequently than the norm would suggest. Indicating the market makers' style, a very useful thing to know.

Cheers, Tuck



To: ahhaha who wrote (2328)6/15/2000 2:11:00 PM
From: Agenda  Respond to of 3076
 
"If you don't, you'll just end up committing financial suicide."

Dr. Ahhaha doing the "a cha cha cha" again. A good prescription would be some private sessions with you. Then you can really get inside his head and work em' for the dough doc. You know, the "you'll lose all your money if you trade" stuff...but if you do what I tell you.....