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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
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