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To: jeffsthoughts who wrote (10367)8/20/2001 8:41:13 AM
From: Doppler  Respond to of 209892
 
'Max Pain' theory seemed to fail miserably this time around

I don't think that is true. 3+ pts in the grand scheme of things is miniscule. The range of options expiring Friday ran from 25 to 63 (with the exception of 1 put contract at 76. While 41 was the absolute Max Pain point, several strikes on either side of it were VERY close in terms of damage to option holders. Look at the upcoming Sept expiration for example. 42 is now Max Pain but if you look at the curve, anywhere from 36 to about 45 could be considered Max Pain with 95% of all options outside of that range.

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