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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?


To: Grant who wrote (59717)8/20/1998 12:22:00 AM
From: Sig  Read Replies (2) | Respond to of 176387
 
Grant:
<<<< Would someone explain what Maximum Pain numbers are. How they are calculated and what do they mean to the company and the stock price.>>>>
1. Max Pain occurs when the stock price on expiration exceeds
the computed Maximum Pain value and you failed to buy the calls.
The actual value of pain to be felt Friday would be about $25
X 100 (minus cost of call), times the number of calls not purchased
2. Since Dell did not sell puts this quarter, I assume they bought calls at a low cost. The more pain you feel in item 1. above,
the happier the company and the Dell longs will be.
3. Dell stock price has broken loose on the upside, if it can now get past 118 its free do as it pleases
Just joshing.Am sure somebody can explain who has pointed out that Dell may be immune to the Max Pain point
Sig