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To: His Pinkness who wrote (90939)1/23/1999 8:16:00 AM
From: Ben Antanaitis  Read Replies (2) | Respond to of 176387
 
HP,

In short, the Max-Pain Point&#153 is a calculated value for the closing stock price, on option expiry day, which would result in the maximum number of worthless options contracts. This is where the 'option market makers' would keep the maximum amount of premium and the option buyers would hold the maximum amount of worthless paper.

BUT... stop by the web site, there is a link to a complete description with a 'worked out' example on every Max-Pain Point&#153 graph page.

Ben A.
ez-pnf.com