Replies to post #20167 on China MediaExpress Holdings, Inc. (fka CCME)

[viking86]

Nice catch. B/w Mar 5 and Mar 7.5 calls over 8,000 contracts traded today:

Mar 5 calls 5,387x, Close= 7.2, down $1.80
Mar 7.5 calls 2,640x, Close= 5.00, down $1.65

These deep IMO calls have seen crazy volumes for the past several days. I think shorts are planning a massive exit here by first driving the stock down and buying these calls at depressed prices, then let the stock float back quickly as 10K release day approaches so they can cover at a deep discount. The higher the stock closes on option expiration day, the lesser will be their net cost to cover as the calls spike back. But will option MM's have enough shares to sell back to them on Mar 18 when they want to exercize these? Any limits how many calls they can buy and exercize ?

PS: I also think that we may see another wave of hit pieces in the next 1-2 weeks as shorts try to push this balloon down further. fwiw

[bUrRpPPP!]

Did you happen to notice when that volume came in on those IMO 5 and 7.50 calls? I'll be watching them tomorrow as this maybe the signal that the shorts have started to cover their asses now....the total open intrest on the $5 calls was only 852 yesterday and now KA_BOOM another 5,387 contracts today...almost $4,000,000 worth on just the 5 strike alone....thats sick!