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To: Elmer who wrote (54908)	5/1/1998 11:01:00 AM
From: Gersh Avery	Respond to of 186894

Elmer Re:point of maximum pain I don't personally calculate these things. There are several people out there who do. Here is a link from someone over on the AMD thread that does that kind of work. Very nice job: pipeline.com Gersh

To: Elmer who wrote (54908)	5/1/1998 5:43:00 PM
From: Francis Chow	Read Replies (2) \| Respond to of 186894

< At this time the "point of maximum pain" for May is ~75.> <How do you calculate this point?> Plot aggregate options value against strike price. You will get a U shaped curve. The maximum pain point is the minimum point on this curve (where option writers have the lowest payout and option buyers make the least money). Aggregrate options value at each price is the sum of the value of all the outstanding puts and calls. It can be tedious to calculate. I wrote a short mathlab program that does it by creating and multiplying two matrices.