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To: yard_man who wrote (144479)	1/17/2002 8:38:29 PM
From: mishedlo	Respond to of 436258

Someone on my board on the FOOL asked about a "replay" with MSFT max pain at 70. Here was my reply: ========================================================== No you do not get a replay. I have a different rule than everyone else for determining max pain correctness. If within a few days of expiry a stock hits close to max pain (from the wild blue yonder or wherever), I call it a score. What you are missing is delta hedging. If a stock hits max pain and starts sinking/rising (well the powers that be hedged their bets by going short or long the prerequisite number of shares required to ensure a no loss scenario on 1 side of the bet and a 100% gain on the other). They would just assume have them all expire wortheless but in the midst a big selling/buying spree they will prop up the stock with buy/sell orders at the prerequisite price and the stock will "gravitate" towards that number, then they will let it fly/sink. So no. You do not get a second chance to short MSFT at 70. I have no idea what I was thinking of (or not thinking of cause when it rallied to 70 today it was a no brain short), with an enormous number of calls sitting at 70. ============================================================ My early call today of delta hedging (on the turnip board)was correct. M