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L1ving

09/19/13 9:34 PM

#2196 RE: Abracadabra00 #2195

Sorry...did not mean to offend anyone else...... was just trying to make a point......wasn't my intention to insinuate that it doesn't take skill to find an under valued company. Just get mad when people dig up old post and act like they are personal attacks. Some people act like they are the damn CEO or something.
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L1ving

09/19/13 10:19 PM

#2197 RE: Abracadabra00 #2195

What I was talking about earlier with max pain is..... Because options are so volatile mm's make most of their money off of using their inventory to make small price swings in the pps of a stock which equals huge gains in the options market. You can double you money in one day or lose it all. They usually dont loose. The max pain number is the price in which the most options will expire worthless. It's not always dead on especially during a market rally but its a good indicator of which way the price will go end of week because the closer they get it to that price the less shares they have to buy when executions go through. The same firms that sell the options are usually the same ones making the market so they are always trying to get retail stuck with out of the market trades that expire worthless.