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To: DLS who wrote (13160)8/10/1998 11:50:00 PM
From: umbro  Read Replies (2) | Respond to of 164684
 
DLS asks< Does Max Pain also take into account the price paid for the options at the various strike prices?

No. The put/call break-even numbers do take into account the current
put and call prices, weighted by OI, and gives the point at which the (weighted) average call or put will break even.

As far as knowing when an option is "purchased", there is no such number, because a trade requires a buyer and seller. The Options Clearing Corp. knows when a customer "opens" a position, and knows
whether it is long/short, but we don't have access to that info.