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Technology Stocks : Amazon.com, Inc. (AMZN) -- Ignore unavailable to you. Want to Upgrade?

To: umbro who wrote (21066)	10/10/1998 12:40:00 PM
From: M. Frank Greiffenstein	Read Replies (4) \| Respond to of 164684

Max pain? Gray, could you explain to neophytes (such as myself) what Max Pain concept is? And what does the R = 1.0 stand for? DocStone

To: umbro who wrote (21066)	10/10/1998 1:51:00 PM
From: Rob S.	Respond to of 164684

Gary, I wonder if you wouldn't mind posting a little educational explanation on your options posts - many recent visitors probably don't understand it.

To: umbro who wrote (21066)	10/12/1998 5:33:00 PM
From: umbro	Read Replies (2) \| Respond to of 164684

AMZN options report for 10/12/98 AMZN price: 93.188 Options Study for: OCT put break-even: 93.03 OI = 18927 VOL = 4884 call break-even: 95.64 OI = 22391 VOL = 4489 max. pain: 90.00 R = 0.8 R = 1.1 Options Study for: NOV put break-even: 80.68 OI = 4110 VOL = 1449 call break-even: 108.02 OI = 3115 VOL = 1047 max. pain: 95.06 R = 1.3 R = 1.4 Options Study for: JAN put break-even: 77.03 OI = 5944 VOL = 252 call break-even: 115.09 OI = 4906 VOL = 204 max. pain: 100.02 R = 1.2 R = 1.2 Options Study for: APR put break-even: 71.15 OI = 1192 VOL = 87 call break-even: 122.36 OI = 839 VOL = 32 max. pain: 105.08 R = 1.4 R = 2.7 net long/short: 0.11 mil. i.v. for OCT = 0.91 i.v. for NOV = 1.02 i.v. for JAN = 1.00 i.v. for APR = 0.94 Given today's rapid drop into the close, I was surprised to see that the implied vols. on the about to expire Oct. options didn't remain strong. We've seen the implied drop from 126 to 91 in the course of the past three trading days. Maybe the "options guys" are going to keep AMZN in the 90 to 100 range over the course of the week, just to maximize their return on options that have been sold. The Nov. and Jan. options are holding on to their premium values however. Put/call ratios are mildly in favor of puts, but are moving more back into neutral range. Given today's bounce back in the NASDAQ, I'd say AMZN's weakness doesn't say anything good about this stock's chance at moving up. Probably, the prospect of a strong earnings announcement is the main factor holding the price up. I'll be surprised to see a strong quarter, given all their acquistions (which are largely money losers), and increasing competition.