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Re: ajtj99 post# 116171

Wednesday, 03/12/2008 9:18:04 PM

Wednesday, March 12, 2008 9:18:04 PM

Post# of 148479
If one uses the backdrop that the market makers are potentially bankrupt entities fighting for the lives, their short squeeze actions will dictate that they rummage from sector to sector trying to find the highest open short interest to squeeze.

From my personal experience, all they got to do raise the VIX and prices of short calls will go up in value a priori of underlying market movement and short call sellers will close prematurely if it looks like they accruing losses in a losing trade.

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