Replies to post #119570 on Avid Bioservices Inc (CDMO)

[Protector]

I know the fails to deliver, I posted them myself in the far past.

The list is long because it contains ALL stock and is daily updated. You are mixing up 'shorting shares' with shorting shares+buy call and short puts (which is what the MM should do.

The other party buys long shares, puts and short calls.

The bullet work only ON TOP OF AN OWN RISK SHORT TRIGGER to start hitting the STOPS. If it is done by ONE SINGLE PARTY it is legal BUT NOT if it is done in a coordinated way (which it mostly is due to the needed volume).

In other words if the SEC can prove that the set-up was a coordinated deal then it is NOT legal.

Then remains detection by SEC or 3rd party complaint. On NASDAQ the MMs are each others competitors. That means it isn't funny for any of them if a fellow MM participates in a reverse conversion. If the one using the bullets uses them when the MM are at the wrong side the MM loose big. Actually they absorb part of the bullets as part of normal market making. Only then do they retract and can stops being hit.