HI Andy: RE> "option specialists are protected by creating synthetic positions this means we will see more program trading."
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I know there will be more program trading heck most of the volume
I'm looking at is program trading and I'm sure that will continue,
I don't follow the first part, I think it's the way you put it..
I guess now that she has changed I need to relook at all the
positions, may be what your saying will dawn on me if I keep it
in mind and review..them..generlly the options tell a lot,
if a lot of intrest..they lead the stock..now I mean a lot of
interest in respect to her shares..
Did you know that last Fir..any one looking at AT&T options
could have predicted her fall..one 10,000 unit Jan call was sold,
hey it FOOLED the " option specilist" ..they took it..
u know the guy who sold them knew about the CEO leaving,
he sold thoes calls for I think it was 3 1/8 he can buy the same
ones back today for a 1..man that was a slick move..
lets see 1m x 2-1/8...took a lot of guts but $2,125,000 profit
over the week end, not bad..he had to be an insider or buddies with
one..ha he short sold calls..you know he had to know..
and the way that all came down The CEO leaving with out advance
notice to the share holders..and his ra ra on CNBC today..goes
to show you just how much these companies really think of their
share holders..AT&T with the amount of volume she had today
lost about 2 or 3 Billion dollars in cap today,
would you belive that CEOs jazz.
any way back to ASND..tell me more..I'll see if I can sort
it out..my puts are in the money now..I don't hold enough to
effect the stock..and I don't actully short sell..I jus bet on
the way she is going..I don't controal it..couldn't if I wanted
to..
I do take my puts off the table every night, every day in the morning
I look at her and set a sale price and call it in about 10,
it's good for that day only..if they cream this stock at night
after the bell..they will not get my puts in the morning at
yesterdays prices, after all the bet I really made was she would get
creamed at night or over the weekend, now that my puts have value
I put a resonable price on them each day after she opens, if
they dont take them that day..I reset the price next day after
she starts trading..if she rolls on down enough for them to
take my puts in the daytime..then I'm out of her and sometimes
buy more but not right away..well sometimes right away..but not at the going price, I mean I order below what the ask is, sometimes a lot below..u know it often late in the day will fill, I never buy puts at the ask price..and seldom bid at the going bid price..
.if I don't get them so what..but lots of times they will come to you..thats what you want them to do come to you..I don't chase them..
My style not fancy just buy them cheaper than I sold them, then wait once again for an after the bell raid, by the big fellows trying to get out without causing a panic that drops her to were they
are over their magins and have to deal at night..they don't I think
do that on purpose..they get traped..like the day I saw program
selling in MU speed up, like there must have been 6 or more programs
set to try and easy out..but the progarms depend on feed back from
the trades, and there must be some small time delay, and or they
get out of sync..one is selling thinking the last price is so and so,
another is buying thinking it is so and so..but it's changed faster
than the computers can spit it out..or its changed before the order
arrives and that order was based on the price being higher or lower
and it all goes nuts..the volume gets crazy..and it looks like a
war of sorts, but it ticks down, and ticks down, on very high
volume with big spikes..it's almost a cinch when you see that,
they will have a metting after the bell..I have tryed to picture
the brokers watching franticly as their computer gets in a war with another one, and the stock falling but the other computer is winning, tick by tick they can tell that the other guy is winning,
their buy sell thing is out of sync, they want to get rid of stock,
but are slowly accumilating it, and they want to pull the plug on the computer but are afraid to, as they know other computers will sell and tick the price down any way, I think the NYSE has a way to halt it, but don't look like the Nasdaq does untill the bell rings..when I see
those spikes, and tick downs..not just big spikes but lots of them,
and like the war is on, I can just vision the worried looks on the faces of thoes who gathered around to watch the computer fight, the
sort of blank look of dismay as they glanc at one another, and
the shrug their sholders as they look at the numbers and realize
they'r program is not only losing the tug of war, but is buying
but not getting in on the bigger dips, and it's selling but too soon, they have it running to narrow a spread, they adjust..the other guys adjust, then the fun realy begins,,the volume spikes get
closer, and the stock starts "pumping" really pumping, were it was
ticking up and down, up and down, then down on 1/4 pt
increments now its up 1/2, down 1/2 and when it ticks down lower
its at an increased rate..the six computers are selling and buying and buying and selling from one another so fast that one guy who
turns to go get a drink finds out he is dizzy, he stumbles into some one, and says ah I wish you were Maria Bartiromo,
The losing team sees this is not going to work, the stock has ticked
down 3pts since 2pm and they got more than they started with, on top
of that the computer bought at a point above the mean average for the
day..slowly the chief walks to the phone..he reaches for it his hand hesitates..but then he knows he has to make the call,
all eyes are on him..they stock is going to the dumpster this night,
which firm will get the hold the burning match..he wants to sell,
who will buy..lets do it face to face..latter that night the
bidding starts, out of sight, the computers silently now watching
the men, as they try to get out..one frim doesn't mind staying,
but he has to get 2m shares if it goes to 20 or he will still be
over margins..some are thinking how many shares will i have to have at what price to not have to make the margin calls in the morning.. others have already came prepared and know how many to sell above 30 to have a clear a path to buy every thing offered at 20 or less.
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There will be a clear winner, he will wind up with a lot of stock
very cheap..cheaper than his competitors realize..he won't tell
them his average..but he knows when the market opens in the morning
he will be selling to a shocked public trying to bottom fish, and
at a price well above his average, how low the stock drops that night
will not be made known..only what it settels at..the public will
start bidding in the morning at 20 thinking the stock is at her all
time low..never guessing that during the night it had diped all the
way to 5..and XYZ who had no margin calls to make, got in under
every one and wound up with an average he won't and don't have to
tell ..thoes sales and buys will be recorded..somewere..
and lumped in with paper work only a CPA could understand,
he will walk out with stock declared to have a value of 20..he likes that, it's better than counterfit money, and it's all nice and legal..
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Ole man jim wakes up switches on the TV, and waits for
Maria Bartiromo, she anounces ASND will be opening down, way
down she's not sure yet at just what..jim's eyes go wide..
his puts had sold yesterday at 2pm at 2-1/2..he had ordered
some more at 2..did he get them..he calls the broker..
did my order fill..Rick don't remember seeing it..his heart
sinks..o no..thoes puts would be..he runs back the tv room,
and watches..they anounce the price 20..he calls the broker
back up..look at the puts on ASND..ya ok jim..the 40s are,
going for 19.50 ...are you sure my order didn't fill, no it
didn't fill, they never went to 2 jim..they closed at 2-7/8
well the fish got away, all that work, all thoes reports,
and all I made was a $1..and that don't pay for the 2 I lost.
damm I knew not to sell thoes puts yesterday..o well..
it's over, now on to the next one, which is the next likly,
one to get raided at night..maybe I can get a few crumbs..
to heck with it think I'l take a week off go to the mountains,
it'l do me good, so what if the whole thing crashes and burns,
I'l still be here..and the mountains will be just as nice..
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c-u l8r Mr Chen
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