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

To: LTK007 who wrote (97268)	7/22/2002 10:14:07 PM
From: mishedlo	Read Replies (2) \| Respond to of 99280

I just look at Max Pain not really a ratio per say, but let me try for the first time. I do not think it is relavant and I do not know how to weight it, or if it should be weighted at all. Of course thats what max pain does so I will assume no weighting. Here goes: Interesting. I have it at about .5 LOL But I do not believe that determines the bounce. What it does do is LIMIT the bounce to a certain point. That point is the point where Calls vastly outnunmber puts. Right NOW I would strongly suggest 25 (right at max Pain of course), because of a huge block of calls there. Now if 25 gets taken out, can delta hedging send us soaring. In therory yes, but with these outflows (assuming they continue) no chance. But It is very early. I have no idea how this will look in two weeks. This is just a PRELIMINARY look, and I doubt PC ratios OR max pain are of use here other than a general preview. If PUTs were enormously out of line I might think different but this is just normal type of stuff here. M