This isn't my area of expertise but I do know that many if not most market makers have no choice but to close out unused positions in certain stocks so that they're in position come morning to apply buy-power in preparation for the day's trading.
Based on what you're presenting, methinks that NGL mm's are afraid that things may go either way come morning. Better to sell cheap and let it look like a major institutional seller disposed of enough to make it appear the stock is being flipped to the downside as part of a planned manipulation. This leaves trading opportunity in the mm's hands.
I'll be at the ready first thing in the morning and on any hint of weakness I'll be ready to jump. $12/unit would suit me just fine but if things look iffy, I'll split the 500 u's I want into two tranches of 250 per so as to enhance the likelihood of fills. This will have me at 25,000 units which is large enough for me.
However, should units drop down into the $11.75 area, preset GTC orders for a thousand units will kick in there. to be followed by 25 cent lower for another thousand and twice more as we get down to $11 even.
More on the morrow as this leg of the NGL journey gathers excitement.
I've got to say this:
I'm not saying this is going to happen but I would not be surprised to find that NGL will be roaring back to the $13 zone this week. We got there today for good reason---people know it's going to continue happening. On the heels of tonight's painted drop, the roar may scare the crap out of remaining shorts.
Oh, my!--soiled undies?
