Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Applied Materials No-Politics Thread (AMAT) -- Ignore unavailable to you. Want to Upgrade?

To: robert b furman who wrote (9913)	5/20/2004 5:32:34 PM
From: willcousa	Read Replies (2) \| Respond to of 25522

Max Pain - When you look at the IQauto data look at the bottom chart. It shows you the amount of combined money (puts plus calls) at stake at each strike price. For May expirations it tells me that a close above 17.5 and below 22.5 will take out the lion's share of the options on a dollar basis. There is no real benefit in fine-tuning the close beyond that rather wide range. Looking at June the range broadens but moves no higher. By July I have a range of 20 to 25 so the stock can move up somewhat and max pain still be achieved. Look at the many millions of dollars of options that are going to expire and ask yourself who would want to own a call when you can sell one. Will