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... Red Dragon Leo

You need the “current pain” as the option pain takes into account every option traded since that contract was created. The current pain only takes into account the last 30 days… which is more accurate.

Remember, many of those positions have traded hands so many times that the market makers aren't going to lose any money on them. Only the recent one's that they have sold are of any concern to them.

They don't want to pay out on any of those positions, so they will try to pin the stock where they can payout the least amount. Of course you already know that, but you may not have known that the only thing that counts is the options sold in the last 30 days or so.

That's where the current pain is more accurate at predicting the final price. But, it doesn't work too well with ETF's, as they are harder to manipulate. It does stocks pretty well, as long as there aren't any earnings announcements during that last week. If so, then it can be way off.

Anna has a subscription to it, and she said it's not that accurate… especially etf's. (She's over at Hot Option Babe, in case you want to ask her. The link is on my blog roll).

... bear/bull

http://www.optionpain.com/OptionPain/Option-Pai

TYPE IN QQQQ AND SPY THERE IS STILL DOWNWARD PRESSURE IMO

... Red Dragon Leo

Remember this post Joe, as I think we'll see our 97 point in early February.

... Red Dragon Leo

I seen that too. Google will be hit hard tomorrow… that's for sure. But, I think the market will go sideways to slightly up for the next 3 days… until OPX is over, then down some more. (That's on my latest post).

Thanks for dropping by…

Red

... bear/bull

More pressure on equities tomorrow

http://online.wsj.com/article/SB126333757451026

... Red Dragon Leo

Thanks Ameronne…

My posts are a little different then the usual charts and statistics that other blogs put up (all still worth reading though), as I like to think of it as a mixture between a site that does a lot of Technical Analysis, and one that talks about the corruption in the system, politics, and things of that nature.

I'm somewhere in the middle? You might see a post that contains charts one day, and some conspiracy theory the next. But, it's all directed at figuring out where the market is going next… which is what everyone wants too know.

Red

... ameronne

love your blog keep up the good work

... ameronne

Check the option pain for qqqq and spy. looks like more downward pressure though. option pain for qqqq is 44. Thats were option writers will make the most money

... Red Dragon Leo

You need the “current pain” as the option pain takes into account every option traded since that contract was created. The current pain only takes into account the last 30 days… which is more accurate.

Remember, many of those positions have traded hands so many times that the market makers aren't going to lose any money on them. Only the recent one's that they have sold are of any concern to them.

They don't want to pay out on any of those positions, so they will try to pin the stock where they can payout the least amount. Of course you already know that, but you may not have known that the only thing that counts is the options sold in the last 30 days or so.

That's where the current pain is more accurate at predicting the final price. But, it doesn't work too well with ETF's, as they are harder to manipulate. It does stocks pretty well, as long as there aren't any earnings announcements during that last week. If so, then it can be way off.

Anna has a subscription to it, and she said it's not that accurate… especially etf's. (She's over at Hot Option Babe, in case you want to ask her. The link is on my blog roll).

... ameronne

http://www.optionpain.com/OptionPain/Option-Pai

TYPE IN QQQQ AND SPY THERE IS STILL DOWNWARD PRESSURE IMO