400,000 shares created out of thin air by selling 4000 puts and buying 4000 calls at a strike of $12. Now, 400,000 shares are naked and today are being used to hold down the price.
Anyone have a running count of all reverse conversion events thus far?
why doesnt management say something..This is rape of the company and shareholders
Throwing away money to protect their short position in 3 days !!! (Opex on Friday)
These guys are desperate....
Not at all. First, their cost for the conversion is zero since they are market makers. Imagine the cost if you or I were to buy and sell a total of 8000 option contracts!
Second, they never have to deliver or cover the imaginary shares since they are market makers, making the shares shorted naked. See market maker exemption rule for naked short positions.
So far May 18,000 call and put contracts at a strike of $13 for 1.8 million shares created out of thin air. Naked shorts on fire!
Does ARNA mgmt. have anything to say about this artificial dilution of their stock through the use of reverse conversions?
If anyone should complain to SEC it should be ARNA. Just like Overstock did years ago.