Simula (SMU) Message Board

STOCKTALK

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.

Non-Tech : Simula (SMU)

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Richard Silvers who wrote (988)	3/11/1998 9:57:00 PM
From: Jaime H. Ayalde	of 1671

Ok Richard I'll bite, Message 3579217 Its still true: Technically +17.375 would be a Great Technical sign. Selling towards that number has provided shorters with equity. Closing over that point would make them cover. This last mini - impulse (14.75 low and 17.375 High) = 2.625 The maximum correction allowed for this impulse would be (distanced travelled) * (golden ratio) 2.625.618 =1.62 17.375 - 1.62=15.75 So here we are at the moment of truth. The short hedge has been Golden for arbs. No dud here. (if) As the stock trades at higher prices "Arbs" could start getting hurt as the appreciation on the converts will never be 1 : 1 with common. The delta on the converts is always less than 1. And the higher the price on the common, Delta will further be depressed. That is why the arbs make more money as the price declines, but the inverse will be also true.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next