SI
SI
discoversearch

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.
Pastimes : Clown-Free Zone... sorry, no clowns allowed
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Justa Werkenstiff who wrote (137536)12/6/2001 9:40:11 PM
From: sun-tzu  Read Replies (2) of 436258
 
<Maybe it says that Big Money is hedging their squeeze>

well, that's true but probably not in the obvious way. when big money players buy a lot of put options, the brokerages that sell them are now short puts...this of course means that they are now LONG. trading is all about the hedge, so as the brokers get longer buy selling more puts, they must short the underlying common as a hedge.

the best part of this is that any buying move, in the appropriate environment, causes the put holders to sell. as the brokers reclaim their puts, they must buy their common stock back and attempt to maintain market neutrality. this of course potentiates more buying and VOILA...you have a short squeeze.

given the current environment, shorts i feel will be very jumpy tomorrow so the above scenario is in play as far as i'm concerned.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News