that moves the markets. For the bulls, a nice report... unfortunately, until the guy that bought the puts (@25) for Nov. sells his position for the 500% profit he made... there will be added pressure on the stock. Then you will have tax loss selling through Dec. Don't be suprised to see that same guy go long on Mar calls at 20 or 22.50 due to the large short position and the start of the short covering. Support is around 19.50 and fairly strong so that price should hold. Unless of course the company is not telling the truth and some underlying dirt is yet to be dug up. Remember for the most part shorts are usually pretty smart.... but they always have to cover at some point. I am suprised that the guy has not sold yet, I guess hes waiting for that last 50 cents. Of course thats another 100,000 profit for him... I guess I would wait too.
couldn't have said it better myself. I am looking for volume of close to 5 million shares today. I also think it could bounce quicker than you think. Remember the guy has got to sell by next Friday but it looks like he has got the same amount of the December puts at 25. We will see. Good Luck