China MediaExpress Holdings, Inc. (fka CCME)

[chensiona]

So you think the MM would buy the naked calls from the shorts and then sell them back for loss later in the trading day? I don't think the MM would play that game.

I'm not sure why people think the shorts are really so stupid that they would continue to take such risks and sell naked calls in the face of a 10K release any day now, knowing full well that the jig is up and the FUD won't work anymore. If they were going to sell naked calls why not sell the $9 or $10 calls, surely if they are that confident they could easily manipulate the price down no problem why tie up money with such deep in the money calls?

The reason they are buying the $5 calls is because its the exact same (give or take 10 cents) as buying the shares in the open market, and my guess is the MM is heavy with shares. Remember if the shorts were going to sell naked then they wouldn't have started on March 1st after we dropped more than $1 from $14, they would have done it when we were above $14.