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Re: Joe Stocks post# 256231

Thursday, 06/10/2004 5:57:41 PM

Thursday, June 10, 2004 5:57:41 PM

Post# of 704041
Joe, good comments except IMVHO the one about pain. I don't think there's enough options volume on stocks like this, er, well, most stocks, to use the "max pain" concept. The guys who do well with it use it only on the index options, and very liquid stocks like MSFT, and even then the window is from the wed before expiry through the end of expriy week.

With that much slop in a "hit" of max pain, with such small options volume, I don't think it's a significant factor for most individual stocks, at least in the absence of consideration of the index max pain.

Got burned on this early on - maybe I'm biased =

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