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Technology Stocks : Apple Inc.
AAPL 278.79-0.7%Dec 5 9:30 AM EST

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To: Eric Yang who wrote (6017)11/7/1997 10:03:00 PM
From: Sam Scrutchins  Read Replies (2) of 213173
 
2) Wanting to milk every dime out of shorts sellers someone is keeping
the prices stable to prevent scaring Apple shorts away prematurely. But come Monday when the big news hits they'll let it all loose and let the 20 million short shares squeez each other to death, sending shares up the roof, punishing short sellers beyond belief and amuse Apple shareholders. (ya..that's it) <<

This seems counterintuitive to me. The only way that someone could hold the price at these artficial levels is to either sell shares they own or sell shares short (I hope I'm not displaying too much ignorance here ). I suppose the seller could also buy calls with the expectation of flooding the market with stock buy orders, pushing stocks up to astronomical levels, then selling the calls (or doing this with in the money naked puts). Any way I cut it, I just cannot picture the way one would profit from such a trading strategy. Possible, one could do this with the expectation of flooding the market with their short covering order immediately after the announcement (even a little before) in order to initiate the squeeze, then profiting from the results. Anyone have any other ideas.

The only other seemingly plausible reason is that really big money is betting on a price decline subsequent to Monday. I'm admittedly confused over this.

Sam
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