There are a few free max pain calculators on the web. Go check it out for yourself. All say $6 is 21JUN max pain today.
I'll do it for you again as well.
Here 21JUNE as of today's option contracts open interest.. Which strike price has the smallest dollars? Hmmmm......could it be $6? Now go back to your corner and put the dunce cap back on.
Ok Gary...I'm trying to be nice, but my patience is wearing thin.
The theory of maximum pain refers to the belief that the price of an option's underlying equity (a stock or index) gravitates towards the price where the greatest number of option contracts will expire worthless, AS MEASURED BY THEIR TOTAL DOLLAR VALUE..
Please notice the words CAPITALIZED please.
Assemble the strike prices and open interest data for all of the option contracts that expire in the month for which you wish to calculate maximum pain. Open interest differs significantly from volume. "Volume" refers to the number of contracts traded, and "open interest" reflects the number of open positions on a particular contract at a given time.
Calculate the cumulative value of the open interest of all the calls and puts for the option contract you are evaluating. As the Optionetics website explains, "This is the value of the options that will NOT expire worthless" at a given strike price. The mathematical equation to complete this step is as follows: difference between the price of underlying equity, minus the options strike price, multiplied by the open interest. As you do this calculation, the value of the calls should increase and the value of the puts should decrease as the underlying equity increases in price.
Add the total dollar value of the open interest for the calls and puts together at each strike price. The smallest number you see reflects the maximum pain price. At this price, option contract holders own options with the lowest combined dollar value, which bodes well for the parties who sold those contracts originally.
As a result of heavy naked short selling the 2010 Microsoft lawsuit settlement, VirnetX announced a $.50 special cash dividend on June 15th, 2010, with a stock price below $6 per share, payable to stock holders of record on July 15th, 2010 and by October 29th the shares traded at $18.55. Is the 300% increase in share price solely attributable to the special cash dividend? Probably not but it certainly caused many short sellers to cover their positions due to the increased carrying costs by "payments in lieu of dividends".
"It is widely known in the stock market that shorting and illegal naked shorting are often used to manipulate stocks and cause unjust enrichment of ruthless speculators. I advise management of all small cap companies that are subject to attacks from naked short sellers to uncover such illegal activities and protect their shareholders by issuing stock dividends on a quarterly, or even monthly, basis. This practice results in an automatic audit of issued and outstanding shares and help to keep away naked short sellers. "
but Jack's body language when asked if Esai was looking to buyout ARNA, gave us material news in my opinion! Guy is not much of a poker player! haha
No, but Jack's body language speaks volumes!
They just put the smell of blood in the air. If I were short, I'd be exiting my short position ASAP! Too many rumors going around about a buyout. Something is amiss!.
Watch tomorrow...if you are short that is! Bwahhahahahaha