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space1230

07/12/11 12:23 PM

#15600 RE: kwp #15592

I agree. I don't believe there are any buyers. I don't believe that anyone should be buying until info is made public (ironic huh? ... exactly what the sec said & did). Although hysteria for a $2.63 1st trade in 5 weeks is silly. Obviously someone testing the desolate market here. Hardly a 99.75% decline by any means. If I see 10 or 20 million at .0001, then we have a 99.75% decline (won't happen though). There is no float relevance with this trade & I wouldn't call that a dump since the so called "seller" would have been in the red making that trade with a commission. 2 dollars & change is as good as not trading. Who was really looking to either buy or sell $2.63 worth? NOBODY! Doesn't make sense, so here's your logical explanation:

When an option trader places an order to buy a stock option which nobody is queuing to sell, market makers sell that stock option to that option trader from their own portfolio or reserve of that particular stock option. When an option trader places an order to sell a stock option which nobody is queuing to buy, market makers buy that stock option from that option trader and adds it to their own portfolio and reserve. In doing so, market orders are continuously moving, eradicating sudden surges and ditches due to buying and selling imbalance.