As an FYI - Nearly half the trade float is now short. 17.8 MM Shares.
Margin for shorts were raised by half a bip on most trading desks this afternoon as the stock is in regSHO but, market makers have claimed 8 million shares short in waivers due to "market making" activities.
(If you don't pay for premium services for real time data for naked shorts, to bad). I am sure some one will post that there are only 7 or 8 million short according to the latest data from NASDAQ.
In other words, just plain old manipulation as any catalyst will reverse. Also, someone was caught on both sides of the trade wrong. The same trader is naked short and long naked call options at 2.00 on the OCT 19 and the NOV 16.
Solution - NAKED SHORT MORE, instead of covering on the break out a few days ago. Quite amusing actually. There is also a big retail buy being worked for a significant stake.
Actually, I am not a happy camper now, as I am way on the wrong side of the trade with the AH print. My concern is who leaked the news and to whom. Total insider trading on abusive naked short selling. I don't think it was anyone at the company, it was most likely someone who received the filing, like their outside legal counsel. Someone got tipped! Today's regSHO reports 1.4M of total shares traded were naked short and the stock is now registering SHO.
As far as a short cover, there most likely won't be a rush to cover now as they have manipulated it back down to the 1.50 on AH print. Some firms still have margin requirements so there will be additional forced selling for margin calls on the long side as risk will now require 100% equity requirement. Sheesh! What a pain in the #$%$ on this one. Caught a falling knife on this one today, but let's see how it plays out. I got bagged with 58,000 shares at 1.99.
Been awhile since I have been on the losing side of a trade.........As long as it is in regSHO, that should limit the downward pressure, unless there is a rush to sell by actual holders, then the shorts will sit back and cover as they please. It happens now and then, but my models were forecasting 4.12 retrace on the gap. News nutted the longs.