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


To: mishedlo who wrote (41248)3/15/2002 10:42:03 PM
From: Ted Downs  Read Replies (1) | Respond to of 99280
 
Mish,

thanks for the analysis on max pain. I see though that the accuracy is much more predictable for volume stocks or QQQ. So for example QQQ is now at 36 for April exp. Will that usually change frequently through the month ? I have only been checking the stocks occasionally and haven't watched for price changes as option positions change in volume.
For April Qcom max pain is 45 and intc is 30 with QQQ at 36.

TIA

Ted



To: mishedlo who wrote (41248)3/16/2002 9:19:06 AM
From: Casaubon  Read Replies (2) | Respond to of 99280
 
Larry McMillan discusses this strategy in chapter 27, pg. 407 of, Options as a Strategic Investment. It is entitled, Buying Options and Treasury Bills. The concept is to keep the majority of your capital safe and try to hit homeruns with a small portion of your portfolio using well spaced (in time) option play, so everything does not expire at once.



To: mishedlo who wrote (41248)3/16/2002 7:56:13 PM
From: Justa Werkenstiff  Respond to of 99280
 
Mish: Good point. The problem with playing individual stocks during these rally phases is that if you chose the wrong ones to be long you could be in the red for the experience.