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 : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Ben Antanaitis who wrote (40986)	5/8/1998 12:17:00 PM
From: jbn3	Respond to of 176387

Ben, I understand the MaxPain theory you're working with. It is the price point at which the greatest dollar value of current options (both calls and puts) expire worthless, so that the writers pocket the greatest amount of money. I guess I worded my query poorly, so I'll try again: Your hypothesis specifies that the model works best in an environment without major market events or surprises. Given that we are approaching a major market event for DELL computer (quarterly earnings out on the 19th), your model (by your definition) will be more inaccurate. I do not think it likely that DELL will drop to the 60s - or even 70s. So, looking at the situation more realistically, my question is this: What kind of data does your model provide on partial input, i.e. calculating the MaxPain point using say only the options data from ~80 to ~100 strike prices, roughly 10 points to either side of the current price? regards, 3