UnThreaded | Threaded | Whole Thread (5) | Ignore Thread Prev | Next
Author: qcw Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 461088  
Subject: Mish - Help - Max Pain on NT Date: 4/8/2002 11:02 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
I have been reading the MAX PAIN idea for a while now. I curently hold NT PUTS JUNE 02 $5US. In the Money.

After reading the Max Pain Theory, I ran a JUNE 2002 NT Max Pain calculation. It says MAX PAIN is $7.50US. If I believe the theory then it would be telling me that June Exp price should tend to be close to $7.50US. Am I right so Far? If so then Maybe I should take the profit??

However, when I look at the MAX PAIN bar chart it would appear that the bulk of the options are above $7.50US, and few under. So If I am reading that corectly, is it possible that they let it stay low as Max Pain at $7.50US or lower seems to be about the same?

And with Earning season sure to be a "winner - LOL" for NT, should I hold out?

Just wondering if I am reading the Max Pain thing right or not.

Thanks in advance
-Q
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (5) | Ignore Thread Prev | Next

Announcements

Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Post of the Day:
Berkshire Hathaway

IBM: Is Buffett Wrong, or Brilliant?
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement