High volume, extremely narrow trading range - why?

Discussion in 'Trading' started by loufah, Oct 3, 2013.

  1. DELL's buyout was approved. It has spent the last few days trading millions of shares with a daily trading range of just one cent - $13.83 to $13.84.

    Why are people trading this with such high volume?

    Options volume is almost nil - just a few $13 puts being traded for a penny or two, so it doesn't look like people are expecting any significant movement.

    So are people just churning the stock to get rebates or something?
     
  2. It's because retail investors are holding inverse ETFs.
     
  3. arbitrageurs. picking up a nickle ahead of the close of the buyout. final $13.88 price.
     
  4. gmst

    gmst

    can you please expand on this? Thanks.
     
  5. Sure. I'm glad you asked.

    Well, it's like this: somebody once offered me a bunch of kool-aid and I drank it all and went back for seconds.
     
  6. Logically inconclusive. Yes, those are in there, but they can not work without "real" volume underlying their trades.

    I would assume some companies dump their holdings now - and some arbitrageurs pick it up to sell it for 2 cents profit down the line. Unwinding long term positions - makes no sense to keep the stock when you know the fixed exit price. Stuff like that.