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have experience with both of them. no difference imo. there may be a different treatment of customers' funds if IB goes bankrupt but even that i doubt.

i have to give it to you. this seems to be surprisingly weak. let's hear the CC. if we go below 20.90 i may even lose some money which i thought impossible. disappointing. :mad:

at least i know to who i sold the puts... btw for proceeds i bough more OTM calls...

well, i do not remember what exactly was the max-pain for each individual stock on the list as of 9dec. after all that's why the tool discussed above comes handy. I guess that the stock price went down from 12.80 in direction to the max-pain (either 12.50 or 10.00 at the time). as people...

max pain was actually ~10.80 for quite some time. so here you go - stock price from 12.8 to 10.80 as of now. the reason is exactly the same as the reason behind manipulating the VIX settlement price... and it was done on tiny volume (daily around $2M in cash) which was helped by retail stop...

good. note that some of the criticism from skeptics in this thread is warranted and needs to be taken into consideration when the max pain concept is used. max pain is useless without other information - but very helpful when you have all in place. last month i posted 25 stocks from...

if you don't like it then don't use it. that's all one can say. every trader has his own tools... e.g. i do not believe in quite a few technical indicators... btw i do not use option pain for trading gamma at all. i use it mainly for trading delta in stocks i know inside-out...

nice job indeed! some suggestions. 1. graph: use less similar colors for puts' pain and calls' pain. 2. calculations: each option is actually for hundred shares of the underlying. therefore all pain values are in fact 100x higher than what you show. after this is fixed show them in...

well i do not have time to do the work for others. but we could have a look at these 25 stocks - they should be more inclined to max pain manipulation per above... let's also remove those 5 or 6 above, say, $2.5bn market cap. I will be interested myself in the results...

spindr0, with all due respect your analysis is completely useless for this particular problem. max pain "manipulation" is NOT about pinning a stock price to the max pain strike at all costs. generally max pain is about getting as close to the max pain strike as is economically sensible. so if...

i did not say that max pain is a measure of illiquidity. rather the illiquidity is a prerequisite for being able to use max pain to your advantage. for that you need to use more info - some of it contained in the convex function of max pain itself (e.g. open interest per strike).

option pain is very important but only in specific circumstances. in general the stock should be relatively illiquid so that it does not cost the market maker much to get it to the desired zone. in December the max pain usually works the best because of the lower liquidity in general. it...

not everybody has a base currency in USD...

i did not try anything. if you want to pick up on few words from the OP post so be it - I could not care less. The important is the message - which you did not read because you very busy declaring victory when Zhou did not express himself clearly. before making conclusion maybe you should...

good post OP. with respect to Chinese losing if Ben takes rates down that's very true - in a material sense. A. China does not MtM Treasuries on their books and B. rolls maturing issues and coupons into new ones (together with trade surplus). Therefore every rate reduction reduces...

+1 made my day...:D :D :D

just another bubble created by a central bank that is about to pop. if people do not get the pattern by now the this planet gets better ruled by amoebas... just imagine how it may look like in US with accommodative Fed - as opposed to relatively tight ECB... :cool:

and of course we can have a 3 agent economy by adding the government. the government can issue more money and hand it to the borrower (e.g. HARP/HAMP/etc) to be able to pay-off his consumer debts or bad investment decisions. the government can also give something to the bank (e.g. TARP). so now...

he does not. he goes BK and bank does a write-down. to quote you "That is exactly what is happening with mortgage foreclosures, credit card defaults etc."

read my post again - this was a thought experiment for you... if the guy borrowed for consumption (difficult when he is only alone in the economy) he would go BK - the loan would disappear as well with the bank taking a loss...the principal money would end up either with people who sold him...