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sugarsail1
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You didn't even mention how they use options in tandem with shorting the shares. Before they short they sell call options on their stock position, then short rendering those calls naked temporarily, but they don't have to worry since they short until stock price is below the strike at expiration and the calls expire worthless. You can see evidence of this when expiration day comes and the share price is held within a penny or two under the strike price. See: CLF this Friday.
Това видяхме и този петък...след Драги.
Казах го 5 пъти тук.
..........
nsite4mom
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Forcing short squeezes is another game the hedgies play.By going long 15 million shares, a heavily shorted stock soars higher by tripping stop losses. After buying the 15million shares, the hedge fund's 13-F is advertised on CNBC. New analysts jump in with BUY ratings and the old analysts who barely liked the company, change to a Buy....why? Because the hedge fund is driving the trading up. If insiders collude by announcing buybacks and then re-issue old PR as New developments, you can watch a company soar to new highs with no change in fundamentals. Of course, when the hedge fund's next 13-F reported buying Put options against the company, CNBC didn't mention it!The small investors lose their shirt, the hedge fund & insiders make a bundle----& the SEC? They chase algorithmic traders for spoofing the market! What do you call it when hedge funds join forces and raid a stock with buy orders so it flies for no reason? As for media...they usually red-flag insider selling...no notice on this one! Insiders dumped 400,000 shares at the high & borrowed cheap low-interest money to announce a buyback of the stock at the high! Cramer pulled the same move you described. Rated it a "hold" at best with too much debt until his hedge fund buddies jumped in...suddenly...rates it a "Buy" stating the pros out weigh the cons....I think the pros are cons! Name of the company withheld for now...want to watch what additional games the hedgies have in store! I'd whistle blow to the SEC but this stuff is done all day and every day. If the stock market actually reflected the true valuation of the companies it represents, this market will fall like a cinder block!
sugarsail1
Comments (140)| + Follow | Send Message
You didn't even mention how they use options in tandem with shorting the shares. Before they short they sell call options on their stock position, then short rendering those calls naked temporarily, but they don't have to worry since they short until stock price is below the strike at expiration and the calls expire worthless. You can see evidence of this when expiration day comes and the share price is held within a penny or two under the strike price. See: CLF this Friday.
Това видяхме и този петък...след Драги.
Казах го 5 пъти тук.
..........
nsite4mom
Comments (21)| + Follow | Send Message
Forcing short squeezes is another game the hedgies play.By going long 15 million shares, a heavily shorted stock soars higher by tripping stop losses. After buying the 15million shares, the hedge fund's 13-F is advertised on CNBC. New analysts jump in with BUY ratings and the old analysts who barely liked the company, change to a Buy....why? Because the hedge fund is driving the trading up. If insiders collude by announcing buybacks and then re-issue old PR as New developments, you can watch a company soar to new highs with no change in fundamentals. Of course, when the hedge fund's next 13-F reported buying Put options against the company, CNBC didn't mention it!The small investors lose their shirt, the hedge fund & insiders make a bundle----& the SEC? They chase algorithmic traders for spoofing the market! What do you call it when hedge funds join forces and raid a stock with buy orders so it flies for no reason? As for media...they usually red-flag insider selling...no notice on this one! Insiders dumped 400,000 shares at the high & borrowed cheap low-interest money to announce a buyback of the stock at the high! Cramer pulled the same move you described. Rated it a "hold" at best with too much debt until his hedge fund buddies jumped in...suddenly...rates it a "Buy" stating the pros out weigh the cons....I think the pros are cons! Name of the company withheld for now...want to watch what additional games the hedgies have in store! I'd whistle blow to the SEC but this stuff is done all day and every day. If the stock market actually reflected the true valuation of the companies it represents, this market will fall like a cinder block!
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