Replies to post #17912 on Profunds index and sector trading (PRO)

[was Steve]

i didnt think we would go down to those levels as i have been looking for a B since i entered my orders at the close last night. that was jims call

[Bacchus_II]

Max pain is higher than $35 fwiw. Upper $35s.

Could someone explain me how optimum value can be at a different place than an option exercise price ($35 or $36).

Do they take the average of the weighted maxpain of all the component? If so does some play (I don't find the word now for this function of selling the overpriced part and buying the undervalued part between an index and it's component)?