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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study!

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To: Casaubon who wrote (12834)5/29/2000 1:16:00 PM
From: Dan Duchardt  Read Replies (1) of 14162
 
Cas,

I don't think it is actually officers of the companies but rather fund managers or other big money with for-knowledge of an upcoming event which will influence the value of a company.

Jim's reply to this point jogged my memory of McMillan's lecture. Needless to say, this activity is a flag for investigators, and they have looked into many of these unusual volume spikes. In many cases, the trail has led to offshore accounts where confidentiality is protected, thus a dead end. The number of occurrences of this sort of thing is small enough that no roadblocks have been put up to prevent it. To do so would necessarily restrict a lot of "normal" activity from such accounts.

An additional point is that not all of these instances portend a windfall. Anybody can scan for unusual volume and find it. The claimed value of the services taking advantage of these things is the filtering they do to eliminate cases that can be attributed to something other than advance knowledge of an event that will drive the price.

Dan
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