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To: Shack who wrote (60760)12/3/2002 6:48:31 PM
From: ajtj99  Read Replies (1) | Respond to of 209892
 
Looking at Max Pain on the QQQ, December appears to be pretty much 26 right now. Another 25k puts at strike 26 and Max Pain could move up to 27 for this month:

finance.yahoo.com

It's early, but January Max Pain has moved up to 25 from 23 a couple weeks ago:

finance.yahoo.com

Still not a lot of open interest in January, so it could move pretty easily.



To: Shack who wrote (60760)12/3/2002 7:15:13 PM
From: Doppler  Read Replies (2) | Respond to of 209892
 
One thing that is always left out of everyone's max pain analysis is the premium that was either paid or received. If those QQQ 27s were purchased with $2 prem then they aren't really ITM until 29. Or if the big boys sold the 25s and got $2 they are totally happy with anything over $23. That is why max pain is sometimes off from the calculations. It really depends on time held, etc.



To: Shack who wrote (60760)12/3/2002 7:24:25 PM
From: Justa Werkenstiff  Read Replies (2) | Respond to of 209892
 
Shack: Re "...but who's to say we can't rally a couple of more points, then sink back into max pain."

Who is to say we don't sink below max pain and kiss it or exceed it from below? You just don't know.

QQQ 29 is the iron curtain. Calls outnumber puts 12:1. That seems to be the biggest close to in-the-money divergence in the series. If you use 24 as the bottom of the range, the the divergence there is only 4:1.