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To: yard_man who wrote (179560)	7/12/2002 11:50:25 PM
From: mishedlo	Read Replies (1) \| Respond to of 436258

In what way? Up down or around? MY definition of Max Pain is if it hits ANY time during expiry week. I do not care what the classic definition is. We have had serious reversals 3 times during expiry week (twice lower once higher) after pain was reached. WED is normally the day for reversals but one of them was on a Tuesday. Yes MAX Pain says expiry close, but I say ANY HIT during expiry week counts. By that looser definition Max Pain has worked. If you do not like that definition and adhere to expiry close as the basis for success, max pain has sucked several times. Perhaps you think that is not a fair definition but the point is to not be a greedy pig. Max pain hits, it may reverse or keep going. If you make a play based on pain and your target hits during expiry week take the profit and run (particularly if a rally was involved). So while you may think I will be surprised (actually not much will shock me, from delta hedging long or short on some BS news) to my favored scenario of reduced volatility and more or less sideways action, to a complete and utter collapse like last month. My point was that once again, out of the blue the MFs rallied CSCO from the depths of hell to max pain (but by my definition 1 day early). I do not know if it hits next week or not but I bet it comes close. My take is that 85% of the put premium if not more was sucked out of CSCO on that BS rallly today to near 15, and that they easily could have shorted enough shares near 15 to 100% cover any plunge that CSCO might take next week. A day early by my definition and perhaps the same on QQQ but sometimes you have to be a little flexible in declaring a victory for "da boys". There is no question they cleaned up this month. Look at all the calls that were totally toasted, and with todays rally they sucked all the premium out of the PUTs as well. Can they close it here? Who knows. Close enough by my standards (if you give me a day). M