EZ money for specialists & MM's

Discussion in 'Trading' started by Option Trader, Jun 14, 2006.

  1. This is my theory, not backtested. Agree or disagree?

    Step 1) taking out the stop losses & causing margin calls (note exposure is visible),

    Step 2) bringing the stock price back up again to unload a bit to the bottom fishers a bit, before bringing it down further so that the bottom fishers also have a chance to make their donations.

    Step 3) doing the same game again with the next group(s) of bottom fishers.

    Step 4) When it comes to the big move, making a good % of the move up at the opening or after a scary juncture on the way up, so you can kick yourself afterwards for missing the opportunity of a lifetime.

    Step 5) Unloading the bulk once the price is up substantially, when the investor confidence has increased.