S/R Emini Journal

[MiniDowTrader]

Hey guys. What's the theory behind the "Max Pain Point" and options expiration?

Thanks.

MDT

 

[romik]

Quote from MiniDowTrader:

Hey guys. What's the theory behind the "Max Pain Point" and options expiration?

Thanks.

MDT

worthless expiration of options

http://www.daytradeteam.com/dtt/swing-trading-strategy/2005/08/max-pain-swing-trading-secret.html

 

[volente_00]

http://65.108.12.28/cgi-bin/maxpain.cgi


Cramer has some good articles on it.



http://www.thestreet.com/comment/wrongtactics/10399.html


http://www.thestreet.com/comment/rewrite/703618.html

 

[MiniDowTrader]

Thanks romik. Thanks V.

 

[romik]

I would say 1271.50 cash is achievable daily range for today.

 

[MiniDowTrader]

Quote from romik:

I would say 1271.50 cash is achievable daily range for today.

Romik,

Do you put much weight in the 50/200 ma's just above the current level?

MDT

 

[romik]

Quote from MiniDowTrader:

Romik,

Do you put much weight in the 50/200 ma's just above the current level?

MDT

I believe it would be foolish to disregard them, my outlook is based on my own research and looking at weekly chart S&P is trading above 200 and 100 MAs. In actual fact I looked @ 100MA to provide support on weekly basis, which it has done so far.

 

[JimmyJam]

Quote from 4re:

Hey Guys,
We are getting close to options expiration day, that could make for an interesting next day and a half. We have to figure out where max pain is. If tomorrow is an up day or light range day then we know max pain for options was on the call side. If we drop tomorrow then the put side.

Well here are my numbers for tomorrow:

Long 1270-1273.25

Short 1258.75-1251.75

Have a good trading day,
Gary

short @ 1264.25, looking for the downward break

 

[hpeganz]

Quote from JimmyJam:

short @ 1264.25, looking for the downward break

Will the rule of 10 work??

 

[JimmyJam]

her 4re, here's what i see.

if it doesn't happen, the market'll probably just consolidate, and i'll leave it alone.

later,

jj