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To: SI Bob who wrote (9)	10/5/2004 11:19:50 PM
From: Tom Swift	Respond to of 40

Although lately I've taken an interest in the Max Pain theory of Options and am mentally working out a way to programmatically test its accuracy in predicting movement of a large basket of stocks. My hypothesis being that Max Pain might prove to be usefully accurate in stocks with comparatively little institutional involvement. The idea being that options writers in such issues tend to be smarter than options buyers. What would be better and perhaps unique is a section of the site that calculates and (hopefully) plots a VIX equivalent of various ETFs and liquid optionable issues. The math is actually pretty simple and a 20 minute delay to keep costs down would not generally be a problem unless the market is in a frentic mode (such as during post Fed announcements). A link to the new VIX white paper is here: cboe.com Given a decent data feed, it should not be too hard to program a VIXeq(TM-g) for a large number of issues.