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To: Francis Chow who wrote (55282)5/8/1998 8:59:00 AM
From: Ben Antanaitis  Respond to of 186894
 
Francis,

Haven't looked at the upside/downside 'strength' of the attraction effect. But the historic charts have the last Max-Pain point that I calculated and the actual expiry day closing price overlayed on them. So I guess that you could look at the history charts and see how things ended up on the various expiry days.

RE: the tactics used by the big guys to move the price. theStreet.com has had several very good write ups on the Max-Pain effect (they call it something else) and how the major option writers, who are mostly professionals and who mostly write naked options, can influence the price both up and down with almost equal ease. The articles appeared in both the Wrong! and the Saturday Options School columns and are in the respective archives.

Ben A.