Arbitrage Plays Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Arbitrage Plays

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Allen Furlan who wrote (306)	3/23/2001 11:47:56 PM
From: Mark Davis	Read Replies (1) of 376

The MCDT saga continues, inflicting max pain where possible. Spread got to almost 6, yes, 6 today. So now the shorts are screaming and the spread players are screaming. Who is making the money here? Hmmmm. There was some news today, but still doesn't explain the huge spread difference. One working theory is that as they are keeping the spread at a PERCENTAGE of the price, so it widens as the price goes up. As far as squeeze, I have one broker that claims to have shares for shorting (MCDT) so where is the buy-in coming from? Could be they just can't take the pain of the price rise and paid up. As posted previously, this is an illustration of why playing the obvious (betting the spread to narrow) is many times a tricky and costly enterprise. Spread players are sitting on a 2+ point loss here, at least short term. Arbs having problems on SHPGY play as well.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next