Silicon Investor (SI) -- The First Internet Community

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.

Microcap & Penny Stocks : DGIV-A-HOLICS...FAMILY CHIT CHAT ONLY!! -- Ignore unavailable to you. Want to Upgrade?

To: Craig K who wrote (21126)	8/10/1998 2:31:00 PM
From: Richard B. Haenisch	Read Replies (1) \| Respond to of 50264

Hello Craig, Covering at the bid refers to MM being able to buy at the current bid price. e.g. bid 3 1/8 ask 3 1/4 Based on that scenario you should have to pay 3 1/4 to buy the stock, however, MM extend each other the courtesy and allow another MM to buy shares at the lower bid price - hence "covering" their short position at the bid. I hope that helped, Craig! BTW - DGIV raised the bid to 3 1/8 for the first time today, MM only do that if buying pressure forces them to do so. The key will be when the MM decide to raise the bid over a price where daytraders would normally take profits (at least 1/8 of a point on a $1 - $5 stock). That price would be $3 1/4 bid. stay tuned, observe the game within the game! Rico