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Technology Stocks : BAY Ntwks (under House) -- Ignore unavailable to you. Want to Upgrade?

To: chester lee who wrote (6611)	6/17/1998 9:20:00 AM
From: Ben Antanaitis	Respond to of 6980

chester, Max-Pain is a study I've started based on having heard the old adage about most options expiring worthless. I selected a spectrum of tech stocks and just began to graph the open interest value curves and the Max-Pain point is a fallout of the numbers. The historic data that I have collected is posted on the web site in the form of the 'final' graphs for each expiry, where I place a marker for the actual closing price of the stock on expiry day on the Max-Pain graph from the week before expiry day. The effect is sometimes called 'strike price pegging' in articles on options behavior. Max-Pain is based entirely on the CBOE data posted on their site. I have no restrictions on the data ie look at this months SHVA graph vs DELL's graph with regard to the total values involved. On the Options Analysis page, of the BCA Software web site, if you take the link at the bottom of the Max-Pain selection table, it will link you to a fully explained example of a Max-Pain analysis. Ben A. ez-pnf.com