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Strategies & Market Trends : Galapagos Islands -- Ignore unavailable to you. Want to Upgrade?

To: Bid Buster who wrote (23341)	1/27/2003 8:32:29 PM
From: mishedlo	Respond to of 57110

The reason max pain works is because there is $ on the table. Personally I think VIX is a fd indicator but not max pain. If there is $ to be made by getting the most options to expire worthless, well figure that someone is going to try and collect those $. I have my own rules on max pain, not the classic definition. By my rules, max pain works about 3/4 of the time if not more (over the last 3 years or so). I do not know how it worked in the big bull runs. Max pain works best in a sideways market. Panic will always overrule max pain and those are about the only times the last copuple years where it has failed. Panic buying and panic selling. M