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Technology Stocks : Advanced Micro Devices - Moderated (AMD) -- Ignore unavailable to you. Want to Upgrade?

To: wanna_bmw who wrote (80459)	5/22/2002 2:42:31 AM
From: Mani1	Read Replies (1) \| Respond to of 275872

Re <<Does this have anything to do with the so-called "max pain" theory of options? >> Absolutley. Zeev Hed (http://www.siliconinvestor.com/profile.aspx?userid=1524751) called the top to the exact minute, Wednesday 2:22 PM, several days before it happened. Sure he was lucky, but pretty much everyone was calling the top somewhere between Wednesday and Friday morning. I positioned myself for that bounce (long EMLX) and then went short (short AMAT) on Wednesday of last week. Mani

To: wanna_bmw who wrote (80459)	5/22/2002 7:19:45 AM
From: andreas_wonisch	Respond to of 275872

Wanna_bmw, Re: Does this have anything to do with the so-called "max pain" theory of options? AMD's "max pain" value was $10.0 at last week's options expiration but the stock closed above $12. So it didn't close exactly where it should be according to that theory. Like every indicator it doesn't work all the time but there were many instances in the past where the stock closed right near the MP value. If you do a search on it here on the thread you'll find a good explanation of the effect, including a Paul butter cream reference. <g> Andreas