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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 382.95-0.8%4:00 PM EST

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To: carranza2 who wrote (37567)7/28/2008 5:40:15 PM
From: TobagoJack  Read Replies (1) of 217745
 
just in in-tray

player #1: In response to not being able to short the big financials, deep ITM options series are being opened up as a imperfect equivalent that shorts can sell instead

An example -- there is now even a January $10 call in GS, which is trading at $180 -- finance.yahoo.com

Clever people, these market makers :>)

player #2: furthermore, now that opening straightforward short positions in these stocks has become impossible, their next decline won't be cushioned by short covering to the same extent as the last one was. this will likely help to make up for the slight premia embedded in itm calls.

as a general rule, when government intervenes in the market place, expect unintended consequences to result and eventually become the major consequences.

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