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Strategies & Market Trends : P&S and STO Death Blow's -- Ignore unavailable to you. Want to Upgrade?

To: sun-tzu who wrote (27942)	2/9/2003 5:08:44 PM
From: mishedlo	Read Replies (1) \| Respond to of 30712

CSCO Max Pain CSCO has 41K strike 12.5 puts and 107K strike 15 calls. There are calls at 12.5 and puts at 15 but the big money is bet above 15 on the long side and below 12.5 on the short side. Is the smart money in the middle? I would tend to think that 12.5 would hold and buying a dip below 12.5 (before expiry) could be reasonably safe if any kind of rally shows up. INTC at 17.5 there are 100K calls and 15K puts at 15 there are 14K calls and 29K puts My eyeball would suggest 15 as max pain but IQUATO has it very slimly at 17.5. Not going to make it. 29K puts at 15 is not enormous but if it breaks, there will be some additional delta hedging. 15 should provide support. MSFT Max pain is 50 but option volume of Puts is not really that heavy. 31K puts at 50, 16K at 47.5, and 31K again at 45. I would be inclined to believe that MSFT does indeed hold 45 or all hell could break loose on the QQQs. 47.5 does not offer either support or resistance as there just are too few options there. ========================================================== All 3 in general Given relatively few PUTs below the key areas, there is no key option support to prevent a plunge, but there is no waterful event from further delta hedging below these numbers either. M