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That's right Chris. I mean, jeeze, they don't even own any buses!
But the first two minutes are missing...
What's next recorded phone calls?
Wow, the DOW is hit, but we're not doing so bad. We seem to be just tracking the overall market.
CCME 12.88 Down-0.18 -1.38% Real time
DOW 12,029.41 Down-183.68 -1.50% Real time
Much like a MM selling a bunch of shares to trigger stop loss and start a panic, they sacrifice a smaller position to benefit their much larger stake. As I'm not an options trader there are people here that could give the mechanics involved.
I studied Aikido under Masa Morita and Sensai Kushida
Good eye Chris! Look like just more confusion uncovered by CMWEEE Super-Sleuth UpstateChris....
One problem is the wide swings in volatility trigger Stop Loss settings, which spikes the volatility and can trigger panic selling. If you really believe in your DD, then don't use Stop Loss, as you will just get blown off your position and provide shares for the Shorts to cover.
A lot of shorts have covered, only to be replaced by other shorts. One should never underestimate the number of bad decisions made every day.
The options traders are playing with fire.
Top 4 Covered Calls for March 19 Expiration
From:
Covered Calls and First of the Month Phenom
Covered Calls: Profit by buying a stock a day before the first
By Mike Scanlin, Born To Sell
Just scroll down and see CCME is #1
Top 4 Covered Calls for March 19 Expiration
Wikipedia:
Covered Calls
A covered call is a financial market transaction in which the seller of call options owns the corresponding amount of the underlying instrument, such as shares of a stock or other securities. If the trader buys the underlying instrument at the same time as he sells the call, the strategy is often called a "buy-write" strategy. In equilibrium, the strategy has the same payoffs as writing a put option.
The long position in the underlying instrument is said to provide the "cover" as the shares can be delivered to the buyer of the call if he decides to exercise.
Writing a call generates income in the form of the premium paid by the option buyer. And if the stock price remains stable or increases, then the writer will be able to keep this income as a profit, even though the profit may have been higher if no call were written. The risk of stock ownership is not eliminated. If the stock price declines, then the net position will likely lose money.
Since in equilibrium the payoffs on the covered call position is the same as a short put position, the price (or premium) should be the same as the premium of the short put or naked put.
Just coattailing on Larry Isen, but good nonetheless.
The plot thickens...WCTBills FMCN vs CCME
Found this on YMB (As it's so frustrating to some to go to YMB because of the FUD Loonies I'll repost this here)
"Here's what I know of FMCN and CCME via contacts in Shanghai...
Being that these are hearsay, please regard what I write below as pure rumor. There might be semblance of truth in them, but I wouldn't trade off these rumors, as they may be exaggerations or incomplete in content.
FMCN knows CCME very very well.
FMCN hates CCME bcz CCME stole the FMCN name (fenzhong) back years ago in Fujian.
Jason Jiang, CEO/Chairman of FMCN, wants revenge of Cheng Zheng and the Lin brothers. But the Shanghai gang can't touch the Fujian gang.
I think the best analogy to FMCN and CCME would be Facebook... FMCN is the twins "Tyler and Cameron Winklevoss". CCME is "Mark Zuckerberg".
If you don't know what I'm talking about, watch "The Social Network" or read on Wikipedia about the founding of Facebook.
Does FMCN want to takeover CCME? Well... if FMCN stops buying its shares, then maybe it will.
Finally, there's a reason why there's so much shorting going on of CCME. That reason might just be Jason Jiang himself, taking revenge on CCME.
Ok, enough rumors and conspiracies for the day. Data and facts will resume shortly." WCTBills, YMB
Aien Aristeuein (Motto of St. Andrews University)
by Robert Fuller Murray (1863-1894, American)
Ever to be the best. To lead
In whatsoever things are true;
Not stand among the halting crew
The faint of heart, the feeble-kneed,
Who tarry for a certain sign
To make them follow with the rest --
Oh, let not their reproach be thine!
But ever be the best.
For want of this aspiring soul,
Great deeds on earth remain undone,
But, sharpened by the sight of one,
Many shall press toward the goal,
Thou running foremost of the throng,
The fire of striving in thy breast,
Shalt win, although the race be long,
And ever be the best.
And wilt thou question of the prize?
'Tis not of silver or of gold,
Nor in applauses manifold,
But hidden in the heart it lies.
To know that but for thee not one
Had run the race or sought the quest,
To know that thou hast ever done
And ever been the best.
Well, no shares for Shorty!
Symbol: CCME
Availability: 0
Exchanges: NMS
Green light!
"... And the darkest hour is always - just before the dawn..." The Rhonettes
CCME Fair Value: $68.31 or $82.68 (adjusted for risk)
smartmoney price check
Why would CCME want to go for an acquisition valuation at 9.74 PE? I mean $23 doesn't even approach the $29 price target, which will be raised no doubt after stellar earnings... I think Zheng is on a mission and wants to build a media empire, and not just sell.
After many conversations with hedge fund managers, private equity groups, and senior executives in a certain US company that is the US equivalent of FMCN (although larger), I'm almost certain that FMCN will make a play by the end of 2011 for CCME.
I expect the offer to come in the 2nd quarter of 2011 and to be approximately $23 per share. I also expect this deal to be an ALL-CASH transaction that will close at the beginning of Q4.
This is just my opinion but the pieces are all in place.
Top Shelf! Charlie Sheen could use their help...
Then let's have some fun $CCME...
WCTBills did mention something about wanting to take CCME private, I seem to remember... I've thought for quite a while FMCN should acquire CCME, if they were smart. Then there is Hank Greenberg..
Too many possible suitors. But in the final analysis - it's all good.
That's my point too.
It's Mardi Gras... Happy Fat Tuesday everyone!
Just got our first pre-market trade $13.00 + .01. Every one waiting for someone to flinch...
Thanks, I'm glad it's not complicated!
Thank you, I am not an options trader but I think you may have hit on something here:
"EXCEPT that a short to hedge calls written by an options market maker is not subject to Reg SHO like the underlying stock is, including additional options written during the REGSHO period. This might be the loophole being exploited here."
Forgive me if I'm wrong, but doesn't buying the call tie up the share making it unavailable?
What I get a kick out of is naked options. As long as they are not exercised you are pulling a premium out of thin air, but if they are exercised - you better find some shares fast!
It's my understanding you can reduce the number of shares available to cover short positions without driving the price up by buying deep ITM calls.
Deep IMO Call Buying - This is what I was referring to when I made mention of a "synthetic short squeeze" last week. Do you options guys think there is merit in this theory?
"I spoke with an A+ options trader who I have known for 20 years who told me the ITM March options calls activity is big money buying to create a huge hidden short squeeze.
They are buying ITM calls and immediately exercising them to create a huge hidden short that will have to be covered.
Currently his source tells him the hidden short is over 2 million shares and to expect the deep imo call buying to continue strong. Big money wants to crush the shorts once and for all and this is how they will do it.
Remember you heard it here first." druplouis YMB
IB - Shortable Stocks: CCME
Symbol: CCME
Availability: 10'000
Exchanges: NMS
Just an excuse to pump Pretium Resources
Yeah, except by now are there any savvy investors that don't know what company Larry Isen is talking about?
Understatement of the century!
Quite a resume WCTBills!
"Dr. Huifeng CHANG —
CEO of CSOP Asset Management Limited
Dr. Huifeng Chang, MBA. Prior to joining CSOP in 2008, Dr. Chang worked at Citigroup’s Global Equity Division in New York since 2000. His experiences include equity proprietary investments, equity derivatives sales and equity trading risk management. Before moving to Wall Street, Dr. Chang was a researcher, consultant and system developer at Kamakura in Hawaii, specialized in asset liability management (ALM) for banks. Before switching his career into finance, Dr. Chang was a post-doctoral researcher at University of Hawaii, where he received Ph.D. in soil physics in 1991 and MBA 1995 respectively. Dr. Chang is licensed with FINRA Series 55, 7, 63, and GARP’s FRM."
Investor Relations
Here, here, Forzagrifo to the CCME Hall of Fame!
Top 10 Stocks to Own in China, by Clayton Reeves
Top 10 Stocks to Own in China
Never underestimate the power of fear. Likewise, never underestimate the power of greed. The market when confronted with a catalyst almost always overreacts. The inefficiencies of the market are what can give you out-sized gains and likewise out-sized losses if one is not careful. If the stock is sick, it doesn't mean the company is sick. So when does the stock price trade at a multiple that makes sense? When the money managers decide it's time for multiple expansion. End of story. So given that your thesis regarding a company is correct, then one has to be patient enough for the stock to eventually come into favor and express a justifiable multiple. Some company's are so wildly profitable that they occasionally can force the hand of the MMs, and can change the opinion of their whole sector. With the margins and growth they are maintaining I think CCME is one of those rare investment opportunities that you're lucky if you can catch even one of them.
(reposted from yesterday)
Shortable Stocks for United States
Symbol: CCME
Availability: 40'000
Exchanges: NMS