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To: mishedlo who wrote (57998)	10/30/2002 2:23:37 AM
From: velociraptor_	Read Replies (1) \| Respond to of 209892

I agree with some of that. But the potential profit was extreme if one held only until 1-2 days before expiration. The bulk of the rally occured in only 4 days which took us into about Wednesday the week of expiration. If you held Puts, sure a bunch of them would have gone to zero, but one could have easily bought very cheap Oct 830's (for about 1.00) on Oct 10th which at that time weren't worth very much since they were nearly 60 index points out of the money with only a week to go. However, by Wednesday those guys were easily worth over 20 as they were well in the money at that point for a gain of 20:1. Stocks like IBM, and a bunch of financials saw similar gains. One could have easily taken profit at that point. While I do agree that delta hedging probably took some of the bite out, there is now doubt that anyone that wrote calls in the last 10 days before expiry probably got a whipping. Had the indices, QQQ, etc, stopped at max pain points, it would have been a much more successful "max pain". The theory also suggests that stocks or indices will end around the max pain level at expiration and not 10% above which is a huge factor to miss by.