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Technology Stocks : All About Sun Microsystems -- Ignore unavailable to you. Want to Upgrade?

To: Charles Tutt who wrote (10089)	6/6/1998 7:16:00 PM
From: Ben Antanaitis	Read Replies (2) \| Respond to of 64865

Charles, Since the Max-Pain effect is a second order effect, ie it gets swamped out by greater forces like news, momentum, world events, etc. It turns out that sometimes the max-pain point is way off from the current price on expiry day. The external forces/events have moved the stock price and the inertia of the open interest cannot react, for whatever reason (like millions of dollars of naked contracts that the MMs would have to close out to move the Max-Pain point). For example: two months ago, the hottest thing was LU: pipeline.com But the last month, when the momentum died down: pipeline.com Last month it was the DELL runaway train: pipeline.com This month ?? Currently the XAU index (~$73) is out of joint with the Max-Pain point: pipeline.com Is this the kind of thing you asked about? Ben A. ez-pnf.com