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

To: Lone Ranger who wrote (60862)	5/2/2002 10:50:44 PM
From: mishedlo	Read Replies (1) \| Respond to of 99280

quote.cboe.com That is the bible but I suppose YHOO should match it. CBOE should be easier to read. BTW - Max pain does not IMPLY anything. Max pain SUGGESTS (sometimes very strongly) something will or will not occur. Sometimes it SUGGESTS only a direction and not a target. The 100K calls vs 48K puts at 33 STRONGLY (imo) suggests QQQ will not close above 33. With 77K and 98K calls at the next two strikes (each double the put volume) one can see that overhead resistance (especially in this bear market) is ENORMOUS. As for the target. I eyeball it. But a good double check is iqauto.com An eaxmple of a direction without a target would be if there were 100K calls on a stock with no puts. In this case, there is a target because of the heavy PUT positions at QQQ 30, 31, and 32. The target is 33 32 34, in that order, but if we drop and people buy more calls it could easily become 32 or 31. Look at the bars and notice the resistance north of 35. I have been following this for a couple weeks and lots of insane call buying (or profit taking in PUTs) has caused Max pain to drift down from 35 to 33. That is a pretty big change and happened because option interest was very light this month (not so light now) but being light was more subject to change. People have been buying calls all the way down (and a one day blip in P/C ratio today) is meaningless and not reflected at all in the above charts. M