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Strategies & Market Trends : P&S and STO Death Blow's -- Ignore unavailable to you. Want to Upgrade?

To: Jeff who wrote (923)	5/24/2002 10:58:48 AM
From: exp	Read Replies (1) \| Respond to of 30712

Jeff, I am wondering if da boyz normally try (on purpose) to get substantially away from Max Pain values on SPX/QQQ in either direction so they can then run them up/down to Max Pain values before expiry. After all, if the market is volatile, "they" can charge more for the call/put options and then have them expire at "optimal prices". So, if the market is on a given side of Max Pain (right now below SPX=1125 and QQQ=33-34), they may try to exaggerate the down movement for a better counter-move to Max Pain values in late June. On the other hand, if "they" fail to move markets much away from Max Pain, then maybe a "ping-pong" strategy is used, where "they" ping-pong the market on both sides of Max Pain to create some needed volatility. Your thoughts on this theory?