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


To: t2 who wrote (82435)11/13/2001 11:12:24 PM
From: SecularBull  Respond to of 99985
 
In the case of options expiration, the market will find equilibrium wherever the institutions stand to lose the least amount of money on options expiration.

~SB~



To: t2 who wrote (82435)11/14/2001 10:46:00 AM
From: Uncle Frank  Read Replies (2) | Respond to of 99985
 
>> Can anyone make a link between the options activity and market direction for this week.

There's always the MaxPain approach. The following site calculates the value for a stock at which the put and call holders will incur the maximum loss at expiry.

iqauto.com

Based on the samples I ran, MaxPain theory indicates there will be negative pressures on the market through Friday.

qcom 50
sebl 17.5
ntap 7.5
csco 17.5
msft 60
intc 25

uf