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Strategies & Market Trends : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?


To: Ibexx who wrote (6267)11/16/2001 4:29:26 PM
From: Kayaker  Read Replies (1) | Respond to of 99280
 
MaxPain theory works only when there is an absence of trends, which is NOT what we are facing with now.

If that's true, then it's because most puts and calls are purchased close to the current stock price, i.e., ATM. So, if the stock moves in a narrow range, the MaxPain theory appears to 'work'. Makes sense, but unlikely due to any kind of manipulation IMHO.