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To: Night Writer who wrote (88643)1/6/2001 10:16:37 AM
From: PerryA  Read Replies (1) | Respond to of 97611
 
Don't forget that the Max Pain Point is often incorrect in January due to LEAPS being rolled in with the short term options.

Why do you think the options that were purchased and sold as LEAPS should be ignored when calculating Max Pain? Just curious. I suspect that some of the downward pressure in the market is due to all the LEAPS that were written by institutional traders that are (or were) deep in the money.

Regards - PerryA



To: Night Writer who wrote (88643)1/7/2001 7:40:33 PM
From: profile_14  Respond to of 97611
 
NW, I never assumed it to be correct, only a good educated guess, but given we are 25% or just shy of that from the number, I think that would be a stretch under current market conditions. Nonetheless, February options might be attractive on a play based on earnings and guidance, especially if we retrace another point or so.

Best,