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To: Shack who wrote (67774)2/14/2001 6:54:38 PM
From: UnBelievable  Read Replies (2) | Respond to of 436258
 
$NDX Components And Max. Pain

The $NDX is an adjusted capital weighted index. That means the influence that a component has on the index is dependent on its market cap. (In the case of the $NDX they do some adjusting so in some cases the contribution is weighted more or less than it actually should be.

The following table shows the top ten $NDX stocks, based on the percent of the index which the stock comprises, the max. pain point for that stock, todays closing price, and the dollar change it would have to experience to close at max. pain.

Company % $NDX Max Pain Close Change
MSFT 7.30% 55 58.38 -3.38
INTC 5.23% 35 34.13 0.88
CSCO 5.00% 30 29.38 0.63
QCOM 4.97% 80 83.38 -3.38
ORCL 3.60% 27.5 25.00 2.50
JDSU 2.46% 50 41.25 8.75
SUNW 2.43% 27.5 26.69 0.81
AMGN 2.38% 65 72.00 -7.00
NXTL 1.99% 25 31.44 -6.44
SEBL 1.92% 65 63.38 1.63

One thing to keep in mind when looking at max. pain is that the marginal pain associated with each strike can vary a lot. In some cases there is not much difference in the pain in two or three strikes, and there can be differences in the pain implications of moving higher by one strike or lower.

The site for the max. pain charts including the cost for each strike, puts and calls, as well as a detailed chart showing how the cost is derived is:

iqauto.com

The link for the $NDX components and their weighting is:

dynamic.nasdaq.com