http://bigcharts.marketwatch.com/ch...MBOL_CHOSEN&nosettings=1&rand=8803&mocktick=1 anyone see this action before? looks like the MM is traping buy orders into large blocks... whatever it is it's descimating the stock price....... any insight is appreciated.
http://www.nyse.com/regshopilot/NYSEplA20050428.txt You need not go farther. It's being naked shorted. Fake paper beats real money most of the time.
i thought naked shorting was illegal?(im a newbie) so they are naked shorting it - what, if anything, does this mean? if the MM is doing this, how the hell can they be squeezed?
Normally it means the stock is going down big time. Theoretically when you short a stock the broker is supposed to borrow shares. Not all people do so it is actually possible to have more shares shorted than the float. They will have what is known as a "failure to deliver". They get around the law by just saying that the shares are still waiting to be delivered. By the time anyone is wiser, they cover their short.
i've been watching this stock close because i have a long option position in it. there's no way it will go down - the bid was for 36.75 a diluted share so there is ~3.00 of upside. So why would the MM, or someone, be naked shorting it? could they be shorting in an effort to force the stock price to pop?
There could be many reasons. They could want to bring the stock down so they can buy it at a better price, or they could just want to bring the price down period. If a market maker or specialist has a lot of shorts and he is not short in the market he has a trade imbalance. When an imbalance exists the market maker will raise the spread between the bid and ask to make up for that imbalance. What appears to be the market price moving up is actually the market maker trying to make more money on each transaction so he can get flush. I should say, that is the way it was explained to me. I could be wrong but the person who told me seemed to know his stuff.
bump for this mornings action. spread was huge - then shorted until the specialist/mm had it narrow again. this has been going on for weeks and can't be kosher...... can it?
http://www.bloomberg.com/apps/news?pid=20601086&sid=a387ALHm8OlU&refer=latin_america No Virginia, there ain't no Santa Claus. Of course it can be.
Because there are innocuous reasons why stock may not get to the purchaser on time, such as paperwork delays, it's impossible to tell how many of those shares, known as failures to deliver, can be blamed on naked short sales Sorry if this is a stupid question, but isn't all electronic? What paperwork are they talking about?