07-25-2012, 02:33 AM
Not that this matters that much as I believe we will get big deal news prior to August options expiry. However, should we see any delays, it helps to see a rising max pain number which only provides further support for the share price.
There is a staggering 25 million in call option value just in the combined $75 to $87.50 strikes for August (this is only for one month IOC fans).
Now, ask yourself this question - should most of those options (say 2 million shares) get an early exercise with deal news, where will they come from? The float is pretty much locked down.