Replies to post #22440 on China MediaExpress Holdings, Inc. (fka CCME)

[Koufax]

That's an interesting theory, but I would be surprised if the MMs left themselves exposed for more than a few minutes. I could be wrong though -- when were the large call transactions? Were there corresponding stock transactions at about the same time?

Today the market is up big and CCME was up only $0.01. This does not seem to be evidence of short covering, however disguised it may be through options. I think that the battle lines are drawn, the Romans and the Barbarians are staring at each other across the border, and neither side is flinching right now.

[Nigel9527]

and who bought these options might just dump all shares right after exercise? otherwise we wouldn't end up in flat.

But by doing these...ITM naked call option writters become new shorts (change from shorting calls to shorting stocks)...

Then, it seems not the shorts who boughts these calls, but MM's who is intending to trigger a big short squeeze. (Maybe they anticipate the squeeze to start after option exp day)

[chensiona]

I don't think the MM would sell that many calls without having the shares first, if he did that he would be taking a loss because the premiums are almost nil. In fact all of the big block calls (exactly 10k total today) came after 3pm so the MM would be open to huge risks if we gapped up overnight. So I think how many calls are sold depends largely on how much the MM can accumulate throughout the trading day.

My theory is that the MM knows the big orders he needs to fill(or has a big institution that basically wants everything it can get) probably from the beginning of the day and then trys to get enough shares throughout the day so he can fill as much as the large orders as possible, that explains to me why we usually hold up well under selling pressure.

What I don't understand is why the MM doesn't jack up the premiums even a little bit, not even the April ones had a premium. The other thing I don't get is if it was shorts that bought and then exercised them to cover why are we still on RegSHO and why would they keep pounding the bid? Either someone is playing games with us or we really are in store for MOASS.