Why do so many people here think CMKX MMs have a massive short position?
Over the last few months CMKX was selling a lot of shares and thats why the price stayed down at .0001 and never moved. I was watching CMKX level II for a long time and noticed that BSIC was the MM dumping new shares. BSIC never had a bid and to this day doesn't have one. A MM that makes a market always has a bid and ask, and when a MM is only selling shares its not hard to see where they are coming from. I couldn't even count how many times BSIC was the only MM at .0001 with a ton shares traded without any movement. Though after a few days of MASSIVE volume BSIC finally started backing away to .0002 and when it got cleaned from .0002 it moved to .07 as it probably finished of all the shares it had for sale. When BSIC dissapeared CMKX had no problem moving up.
CMKX has gone up 1,000% and many $1,000,000s have changed hands. You can't expect CMKX keep going up staight to .01 while there are hundreds of people with $50k+ profit on a pink sub penny stock. Don't blame the MMs, blame the people that sold on news. Many bought in anticipation of this news and sold when it came out. This happens all the time and eventhough I thought CMKX would go higher today I doubt its because the MMs are short @ .0001 and are trying to hold the price down. All of those billion upon billions of shares traded prior to todays action offered huge profits for people and some took it.
Just think how much money MMs make from spread here..... almost 20B volume x.0001 profit per share? Thats about $2,000,000 today alone? How about all the billions upon billions of shares traded .0001x.0002? Wouldn't it be easy to cover a short with 100% spread? For every share given out MMs could get two back. But then again why would they need to short a stock when billions of shares are trading hands and they can double their investment with every fill? Why blindly short .0001 when you can make that same .0001 profit without ANY risk by simply matching shares between .0001 and .0002 and without having to wait years for the short to materialize?
If you think about it some more, it actually makes sense for MMs to run up CMKX. Eventhough MMs could make 100% on their investment between .0001x.0002 they are making much more now as the volume is 10 times higher. They made .0001 of the spread with bxa .0001x.0002 and they make .0001 with the spread now. But look at the volume!!!!! With CMKX breaking out and spread getting cut from 100% to 10% more people are trading the stock which means more volume. Before CMKX traded maybe 2B shares and now its trading 10 times more. If MM makes .0001 of the spread do you think it would rather keep the stock stuck and trade 2B volume or let the stock run and trade 20B volume? Make $200,000 or $2,000,000? Tough choice?
News 
Market Data 
Discover 
