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Technology Stocks : RealNetworks (NASDAQ:RNWK) -- Ignore unavailable to you. Want to Upgrade?

To: Jenne who wrote (2723)	4/18/1999 11:06:00 AM
From: LWolf	Respond to of 5843

Jenne.... BTWDIK= But Then, What Do I Know BWDIK = But What Do I Know Max Pain Theory = that options expire at the strike price where the most investors lose (in a nutshell).... There's a fellow by the name of Ben Antanaitis who has a copyrighted theory and mathematical model about stock prices at options expiration. He's one of the SI subscribers, and posts on various links.... I first ran across him on the DELL thread. I guess he's also into P&F (Point & Figure charting), but I'm not sure of the relationship there. Here are the links to his site that explain the concepts and track several stocks. ez-pnf.com ez-pnf.com Even though many people say that options don't lead a stock, I tend to agree with Ben's theory that they can have an influence, especially around expiration. He uses a mathematical model that evaluates the whole options series for a given month, but I've found that by just looking at the ITM (In-the-money) and ATM (At-the-money) options within 5 days of expiration you can get a sense of where the stock might close on expiration. If you're interested in options at all, Bernie Shaeffer, a fairly famous options advisor, uses options as a way of understanding market sentiment and predicting future direction. I really like his commentary. He publishes an educational column in Bloomberg Personal magazine that's informative, he occasionally appears on CNBC, and has a website optionsource.com, and has several option services. regards, Laura