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VMware, Inc. Message Board

  • the_great_majestic_rawdog the_great_majestic_rawdog Dec 19, 2007 12:16 PM Flag

    Options are a SCAM take advantage!

    Easy money.


    Look at the strike price that has the most contracts and that is the price in will close at on options day.


    Add up put and call contracts for each strike price and the price with the most outstanding contracts will be the close price on options day.


    You can do this weeks ahead of time and PROFIT EVERYTIME


    Big secret that WORK EVERY TIME!!!



    VMWare will close at 90 on Friday watch and learn!!!

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    • http://finance.yahoo.com/q/os?s=VMW&m=2008-01-18

      For January 08

      right now VMW has MAX PAIN of $100 with 17,458 open interest contracts between the calls and puts.

      the second most open contracts is at $115 with 13,070 open interest contracts between calls and puts. No other strike has near the open interest as the $100 or $115.

      I know its said that dont look at max pain 2 weeks out but doenst this say something?? $100-$115?? when its trading at $89 now? Wouldnt this be very bullish?

    • First of all, i am neither long or short VMW. I am an options trader and have thousands of open VMW contracts open, calls and puts. The reason stocks often gravitate toward a strike on expiration is not bc the "big boys" want it to... if anyone thinks the "big boys" are only short options then they truly need some investing help. The max pain is also the max gain for the other side of all trades. Open interest is all open contracts and it is quite naive to think that everyone is long options going into expiration. The real reason stocks can go towards a strike is bc most options are covered. By that i mean most people have stock against open options, even the "big boys". If i am long lets say the at the money option in VMW tomorrow and the stock opens up or down big, i will either sell or buy stock, depending on which direction from the strike the stock goes... up i sell, down i buy. The majority of institutions are doing the same thing. But short optoin holders are doing the opposite. If the stock opens up they buy.. why, thats bc options on expiration are really just stock. If short the option it acts like the opposite of whichever direction the stock goes... stock goes up u either are naked short or u buy a corresponding number of shares to get "flat" The net effect is at tiimes stocks go toward strikes... max pain is the equivalent of listening to cramer and doing whatever he tells u.

    • First of all, i am neither long or short VMW. I am an options trader and have thousands of open VMW contracts open, calls and puts. The reason stocks often gravitate toward a strike on expiration is not bc the "big boys" want it to... if anyone thinks the "big boys" are only short options then they truly need some investing help. The max pain is also the max gain for the other side of all trades. Open interest is all open contracts and it is quite naive to think that everyone is long options going into expiration. The real reason stocks can go towards a strike is bc most options are covered. By that i mean most people have stock against open options, even the "big boys". If i am long lets say the at the money option in VMW tomorrow and the stock opens up or down big, i will either sell or buy stock, depending on which direction from the strike the stock goes... up i sell, down i buy. The majority of institutions are doing the same thing. But short optoin holders are doing the opposite. If the stock opens up they buy.. why, thats bc options on expiration are really just stock. If short the option it acts like the opposite of whichever direction the stock goes... stock goes up u either are naked short or u buy a corresponding number of shares to get "flat" The net effect is at tiimes stocks go toward strikes... max pain is the equivalent of listening to cramer and doing whatever he tells u.

    • If that is the case CITIBANK (C) should close around $32.50. That will be a huge move conisdering C is now < 30

    • great analysis. I'm new to option and put and I want to understand more of it as it is a crucial piece to see how the market rally. Where can I find the information of the contract price, the strike price, and the most outstanding contacts? I have Charles Schwab and it's not too easy navigating around the screen. thanks!

    • I agree. They will try and wipe out the 90s. However, next week they will run the stock to the upsdide and try and build the option activity for January. Friday will be a very, very good time to buy for a pop towards 100 next week.

    • the_great_majestic_rawdog the_great_majestic_rawdog Dec 20, 2007 3:24 PM Flag

      Please read this research. Its was written by people that are smarter than us on this topic.

      http://mbanews.blogspot.com/2004/09/max-pain-theory-is-true.html

    • Your message is the biggest scam!

      Stock options closing to the current market price of underlying are always the most active and traded the most. The open interest of these calls/puts become the most volumes very soon. This is especially true during the last several days before expiration while these options are cheap.

      For example, when a stock trades at 100, the 100 call/put have the most volumes. When the stock price drops to 80, the 80 call/put have the most volume. Most of the 100 call/put is closed.

      Their theory is that IF THERE IS NO BIG COMPANY ANNOUNCEMENT, in which case the stock price will most likely stay at about 100. And of cause the stock will be able to close at about 100 on the expiration day.

      All options are about possiblities. If you follow their theory too early than expiration, you have more chance to loose money, whcih translates into big risk. If you follow their theory too late than expiration, you can only win a little and may lose a lot which translates into big risk too.

    • VMW has the most open interest options at dec 100 calls. so between today and tomorrow VMW will hit $100?

    • the_great_majestic_rawdog the_great_majestic_rawdog Dec 20, 2007 12:49 PM Flag

      WHO DOUBTS ME NOW!!!!

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