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Microcap & Penny Stocks : Naked Shorting-Hedge Fund & Market Maker manipulation? -- Ignore unavailable to you. Want to Upgrade?

To: makeuwonder who wrote (3819)	9/20/2008 12:23:49 PM
From: rrufff	2 Recommendations Read Replies (1) \| Respond to of 5034

It is rather frustrating how the popular and business media seem not to know or care about the details. As evidenced by the posts here from stoctrash, is the confusion intentional? Make it look like it's all about just defending scammy companies. The option MM exception may be the most abused part of the system. It's pretty easy to short indirectly even stocks that are hard to find borrows. The net result is a naked short as the option MM uses his exception. So what's the difference in the net result? It's a naked short. MM's in both equities and options should have a reasonable time to finish their trade. They have made plenty of money over the years and they can clearly come up with systems and price patterns that allow them to complete trades within a reasonable period. That doesn't mean "never" or months or even weeks. It's a joke when the defenders of this archaic system claim that this will make options markets less liquid or spreads larger. Have others out there had experience trading options? I often undercut the MM on both sides of the trade. They don't provide sufficient liquidity or orderly markets even with naked shorting the equity to hedge their move as MM. They strictly are there to grab or steal as much money as possible. One of my favorite games is to throw in a small order better than the bid or ask. In a flash, I'm very often matched by hundreds of orders. Then I do it again and same result. Is this a coincidence? Nope, it's abuse and trying to game the system. Try it yourself sometime in situations of wide spread. I'm not talking about rarely traded vehicles. I've had some of my best results in FXP, which is extremely volatile and also SIRI last year before the merger. I was able to play both sides of the spread and become the de facto option MM. As for derivatives and "ways around" to manipulate, again, it's time for our politicians to decide what is more important gambling by moneyed pools or capital formation for US businesses.