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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: Gottfried who wrote (55610)	11/14/2001 11:43:46 PM
From: StanX Long	Read Replies (1) \| Respond to of 70976

A little more than a year ago I did a little investigation. I used the MaxPain data and compared to Yahoo history for accuracy. I found MaxPain could easily be off by a few buck. That was using the day close numbers. But more often than not, within days of option expiration, both the puts and calls could have gotten out with minimum lost. I believe this is allowing bigger investors a chance to get out at their maxpain, but eager enough to come back and try it again next month. The brokers keep the looses low enough as to not cause so much pain to have their investor run for shelter. Then they can sell the options for the commissions. Commissions that is where the money is, selling option for the commissions. BWDIK Stan

To: Gottfried who wrote (55610)	11/15/2001 8:54:42 AM
From: willcousa	Respond to of 70976

We have noted in the past how often stocks seem to gravitate to their max pain points on expiration day. Some (self included) see this as evidence of manipulation. I use it in deciding what strikes to use when I write cc's. Whatever the explanation for the movement to max pain it happens very often. When the market makes a big break up or down there is no way stocks can be brought to max pain. If there were there would be no breakouts. So when I calc. max pain on my five outstanding writes I find all are well above max pain today. I don't see how the stocks can revert to max pain this month. We have broken out. Question is can we hold it or are we going to retrench. I am voting retrench but it is just gut feel right now.