Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (80525)	7/19/2001 8:17:50 PM
From: Greg Jung	Read Replies (1) \| Respond to of 99985

Mish I think your emphasis on max-pain is too literal, most open interests are balanced so nobody really takes a big bath if MSFT closes at 75 instead of 65, for instance. But driving the price to a nearby strike point is probably a more demonstrable effect. Also possible effect is that once the options tension is released by monday/tuesday of following week the market has renewed freedom to swing. Usually expiration friday is anti-climactical to what one might anticipate: a little push in the morning going to steady flat-line. Also I haven't looked, but how much does OI represent for the Qs, relative to their daily trade volume? I look at sunw, even a 63,000 contract position is 6M shares just 10% of what friday's volume is likely to be.