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

To: Homer who wrote (10325)	7/3/1998 3:23:00 PM
From: Ben Antanaitis	Read Replies (2) \| Respond to of 64865

Homer, You have to go and take a look at the calculation explanation for the graphs to make sense. pipeline.com The object of Max-PAin analysis is to project where the stock price might be on expiration day based on the value of the spectrum of open interest that day ie the point where the maximum number of contracts expires worthless. It has nothing directly to do with where it closed yesterday, just that yesterday is tracking on the Max-Pain point. But, for example, on the Max-Pain point graph, the second one on the web page, for a SUNW closing price of $45 on expiration day, the value of all the 45, 47.5, 50, 55, and 60 Calls as well as all the 45, 42.5, 40, 37.5, 35, 32.5, and 30 Puts is 0. The curves represent the total value of all the open interest at each possible closing price. Open interest held at expiration has only a value of 0 or some real positive number, never a negative number. Ben A. ez-pnf.com