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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: Peter V who wrote (88900)	7/17/2009 5:02:09 PM
From: Real Man	Read Replies (1) \| Respond to of 94695

Max Pain is a manipulation theory/algorithm. It assumes every expiration week stock prices are manipulated. So was gas this week (UNG), since it dominates the trading volume of actual gas. fma.org The manipulation theory states that the Market Makers will manipulate stock price so that it will close, on expiration Friday, at or near the level where most options expire worthless. It will gravitate to a strike price too, in general. It worked flawlessly lately and in 2002-2007, except last year. P.S. This IS manipulation, and it's actually criminal.