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Non-Tech : Bill Wexler's Trading Cabana -- Ignore unavailable to you. Want to Upgrade?


To: RockyBalboa who wrote (4586)11/24/2008 8:47:28 AM
From: RockyBalboa  Respond to of 6370
 
Citi traded briefly at 6 but then sellers took over... I discussed with an options trader who suggested that some of the low priced puts have been surrendered (ie not chosen to exercise) and some calls got exercised which were out of the money (that would be even more weird).
This means some losses to market makers who sold those puts and shorted stock; and is likely adding fuel to the stock because they have to cover.