KM, how about MSFT call options going up 1,500% overnight in value, the day after earnings about a year and a half ago?
Yes, many made 15 times their money and more in less than 24 hours on monster call volume. Coincidence? Maybe, maybe not.
In fact I can't say it happens every three months, but MSFT earnings seem to often be announced the day BEFORE options expire when options leverage is highest.
With the sudden and similar returns of 300-1200% last Wednesday for those who bought call option contracts of CSCO, EMLX, QLGC, the QQQ's, etc. the day before, it's beginning to look like this happens occassionally.
With up to 1,500% returns overnight at stake, it's not hard to believe that some may very willingly go to great lengths to manipulate the markets. As long as they don't do it too often, I guess they don't think they are attracting attention.
Perhaps the bigger question is, "Do these kind of potential profits, where one could conceivable retire after one 24-hour bet, be allowed? Does it make it too tempting for those in a position of power to play it fair?
Richard Ney exposed the advantage Specialists have in manipulating prices. Perhaps they do, once in a blue moon.
With retirement in 24 hours at stake, is it a big stretch? |
