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To: Sparkle who wrote (10106)	6/9/1998 4:53:00 PM
From: Kal	Respond to of 64865

>>Would you mind expressing your thoughts on this. I'll share my humble thoughts: puts, calls, shorting, options...etc should not exist. ONLY PURE BUY/SELL should.

To: Sparkle who wrote (10106)	6/9/1998 5:01:00 PM
From: Ben Antanaitis	Read Replies (1) \| Respond to of 64865

Sparkle, *OT* The Max-Pain study, as I envision it, is used to see if the open interest distribution might 'drive the stock price' so that the maximum number of them, the contracts, expire worthless. The MAx-Pain effect is a second order effect is easily swamped out by breaking news (breaking means unplanned, or unexpected), world events, or sudden momentum. Look at how far off the LU Max-Pain was two months ago, or DELL last month, when momentum and news was in sway. I find Max-Pain to be indicative three to four weeks out from expiry, but I use them to check the pulse of where I think the stock may be when I do the 'week before expiry' graph. Which, by the way, is the one that you see as the 'final' version for each of the historic Max-Pain graphs in the study. you are not looking at the open interest on Expiry day, but the Friday before. I just add the Expiry stock price. I guess I'm too conservative (risk adverse) to short open interest... brrr.... 8-o Sorry. Ben A. ez-pnf.com