Bland felt this was an interesting post and analysis. It is from the Yahoo RFMD board. Any comments from the porch members here?
Tuff_Gnut (RE: Price Control)
by: hcb0172 (27/M) 3/17/00 6:00 pm
Msg: 20495 of 20518
It happened in RFMD to make the 145's worthless... which was the largest open interest relative to the stock price.
It happened today in ANAD.
They kept CNXT below $80.
TQNT fell earlier in the week wiping out everything.
How do they do it?
I am of the conspiracy theory, and I will remain in that theory until I am proved wrong.
My theory is there is bigger, stronger, darker money out there. You may make $20K on a profit trade... but there are others with millions at stake, and millions to risk. I'm of the opinion MM's can hold it down. I'm of the opinion there are people willing to short 1M shares on the last day of expiration, only to cover next week for $1-$5 higher than today's close, rather than pay $15 on an option they wrote.
They say the SEC monitors every trade. That may be.
It ain't a science, just what I observe. And 9 times out of 10 I can pick the closing price based on this....
Is that manipulation? Is that conspiracy?
Or is it luck?
If we profit by it, does it matter?
It's a strange game, and you may call me bizarre or a neophyte... but I truly believe the Gordon Gecko's of the world can pop this stock, and any others...
Or this "tanking" this week? MM's, brokers, funds.. they all just pulled their buy orders this week, and let the stocks correct. Now if you don't believe THAT.. that's the damn truth. Funds IMHO let the retail Joe correct these stocks, then funds bought back cheaper. Also in doing so, wiping out a TON AND A HALF of tech options across the board that up until Monday were worth gold.
Just ask my friend who invested $11K in TQNT and CNXT calls, and was up $15K up until Friday... today, he's wiped out of his profit AND his $11K.
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