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Technology Stocks : Advanced Micro Devices - Moderated (AMD)
AMD 207.67+2.2%3:59 PM EST

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To: justaview who wrote (227602)3/15/2007 5:28:56 PM
From: justaviewRead Replies (4) of 275872
 
Is anybody here familiar with the mechanics of secondary stock offerings?

I researched this a bit. There is no doubt in my mind that a secondary offering is in the works. The most likely scenario is that AMD has already signed a “standby commitment” with an investment bank which is accumulating an enormous synthetic short position known as a “lay off”. For the last couple of weeks I noticed that someone is buying thousands of deep in the money put contracts, systematically closing March, April, May and July open put interest.

PS. The same investment bank is most likely supporting the stock price to buy these puts as cheaply as possible.
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