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 : AMD:News, Press Releases and Information Only! -- Ignore unavailable to you. Want to Upgrade?

To: Gregory who wrote (5399)	4/4/1998 2:26:00 PM
From: Ben Antanaitis	Read Replies (1) \| Respond to of 6843

Gregory, Ummm... no. The 1st chart has two curves plotted. One curve represents the total value of all the various strike prices of the AMD April'98 CALLS (the Y-axis value) vs the AMD closing price (the X-Axis value) on the Expiry day (April 17th at 4PM EDT). The second curve, on chart 1, is the total value of the April'98 AMD PUTS. The 2nd CHART is the summed total of these two curves..... the total value of ALL the PUTS and CALLS at the various possible closing prices for AMD. This resultant curve shows the AMD closing price point where: 1) the sum of the value of ALL the PUTs and ALL the CALLs is at it's minimum.... 2)the point where the maximum number of Option contract sellers will lose the least amount of money 3)the point where the Option contract buyers will be holding the maximum number of worthless options OR as I call it The Point of Maximum Pain. The technique is described in a fully worked example you can read if you click on the link below the table. Ben A. pipeline.com