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To: IceShark who wrote (93634)	4/12/2001 4:50:15 PM
From: mishedlo	Read Replies (1) \| Respond to of 436258

Wait a minute. Can a single entity even take a position that large in an equity option? I thought there was a limit. Could be bad data. Ice, I have no idea. Does it depend on the size of the float? I am sure I read an article last month about some stupid institution selling 10,000 puts on CSCO (strike 25's as they thought the bottom was in). Now, that kind of data just looks like 10,000 PUTs but really it is a bullish bet cause the option pits were holders. So contrary to normal thinking, someone "the option boys" had a huge vested interest in having CSCO sell below the PUT price, when on the surface one would think that the PUTs would serve as a block. That is the problem with max pain and why it sometimes does not APPEAR to work. I would gladly pay $$$$ if I could tell whether the option pits were long or short. My position is that max pain always works(in the absense of news) according to the simple definition: The most $ amount of options possible expires worthless every month. If the boys hedge one side or other, or if the institutions are long and J6P is short then J6P will get crushed and it APPEARS max pain did not work. I have not really followed the large caps like IBM and MMM until recently, but those and KSS which they rallied today sure seems like something is up. KISS had a point in going lon on MSFT calls, but his timing sure sucked cause he did it right at pain which was 55 and MSFT dropped to 52. He had to be sweating bullets. This is one that I do not understand as it is well well above pain. Perhaps the pits covered at the bottom and do not care how high it gets, or perhaps there are "other" factors on this that I do not understand, like "just who is long and just who is short". M