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Politics : The Left Wing Porch -- Ignore unavailable to you. Want to Upgrade?


To: techguerrilla who wrote (1932)12/22/2000 9:34:31 PM
From: techguerrillaRespond to of 6089
 
Today was a holiday party on the "Naz"

Don't be fooled by it.

For example, QCOM's "MaxPain" point for Jan01 options is 65. The market is going to bring it back after all the party animals leave the scene and "market forces" bring a reality check around January 2. JMHO.

When I get back from vacation on January 7, I'm going to get seriously into "MaxPain" analysis for the late January bloodbath on the "Naz." If the holiday spirit takes the "Naz" toward 3000 by the end of the year, it will definitely be time to figure out which stocks are most vulnerable under "MaxPain" analysis. Since I'm now in CASH, it will be time to kick ass.

/john



To: techguerrilla who wrote (1932)12/23/2000 7:31:49 PM
From: YlangYlangBreezeRead Replies (1) | Respond to of 6089
 
I've been thinking about what bothers me about Maximum Pain all day. While I know the theory, MP is basically a balance point on a weighted average, right? So who is doing the manipulation? Is it intentional, or unconscious as the options are closed that are more in/out of the money? Something makes me want to graph daily MP against stock price, or I'm not sure what... Where are the backtests? I'd like to know more about the theory.
j