5 From the Devil’s mouth.
reverse conversions and what this really means …
There has been a series of option trades occurring in size month after month . A common explanation is that the shorts are trying to add to their position (losers average losers –devils maxim #3 ) however what is happening in the sordid underbelly of stock loan is that synthetic stock is being created by dealers(market makers) in order to create a temporary borrow in to delay sec mandated buy -ins for failure to deliver on behalf of their key customers (hedge funds who generate commissions) . This is just prolonging the inevitable –the shorts must cover and the longer they wait, the higher vhc is likely to trade as material news transpires .
Regards,
Chuck Bennett
5 Responses to “Reverse Conversions and VHC”
TrendSeeker
This seems like the phantom shares Deep Capture claims happen. Naked shorts, the shares of which are never delivered?
elizamae
So…I’m guessing that long dated, OTM calls are a good way to position for this?
A set-and-forget kind of thing.
chuck bennett
Yes, yes. However not everyone knows in the manner this is perpetated .
regards
Chuck Bennett
hitter
who wudda thunk?
drummerboy
chuck,are you saying that some naked shorting might be goin on?