Lightwave Logic Inc (LWLG)

[jeunke22]

The majority of the shorts are the market-makers who shorted and sold LWLG shares to accomodate the institutions. Market makers are obliged to create liquidity and sold/ shorted shares from $ 6 up to $ 20.
Only when they cover/buy by trading up and down will they be able to close open positions, hoping traders will take profits and supply the needed short shares.
It’s my opinion that Market Makers make up the majority of 21 Million shorted shares. If these were retail shorts you would see much more variation in the numbers than the current tight computer ( algorithm) trading range. The
Market Makers on paper have transferred shares to index funds, are managing shares for index funds (who don’t hold shares themselves but pay a fee) , have transferred shares to managed funds and other the institutions, in the hope to find these shares one day.
To date the institutions own 32 million shares out of a float of 116 million. The market makers are 21 Mio shares short and with increasing demand from institutions this number doesn’t decrease, but stays the same for months now.
No shares are available. Institutions loan part of their 32 million shares back since they own these shares on paper, but 21 million of the shares they own are short at the market makers. Some call this : naked shorts, although there is probably an understanding between market-makers and institutions to make it look regular.
Trading up and down as we see is the result. Never forget though that for existing shareholders the current market makers predicament is proof of much more demand than supply. Normally if demand is bigger than supply prices are bound to go up. I would say stay put.