Soren, as far as I know, even the term floorless did not exist two years ago when I donned the $2 man on the Arakis thread. I believe I am the otiginator of this term. The floorless were created by the street to replace the Reg S when the SEC in essence partially closed the door on those shenanigans.
By the way, for the nimble, it is possible to make money on the long side with floorless, the reason is very simple, it is often difficult for the floorless holders to "lay out" their short position at once, so they cover a little which fuel a rally (often , magically, before some news event) into which it much easier to short. The exercise today might be just one like that. If 3-7/8 does not hold in the next two weeks, despite the expectation of the initial flow of 10,000 barrels per day, you'll know that is what it was, unfortunately, too late.
Zeev |
