I figured it would be fun to play a little game. Everyone guess what the "Short Interest" will be for 11/30/2012 when it reports (in a few days). It was 27,737,383 on 11/15/2012. Whoever is closest to the actual amount gets to throw dtime off a cliff.
28.1 million shares short as of end of November. Up a little from mid-November.
I still believe a lot of these shorts are an arbitrage trade with tMeds, and will not be closing their positions in the near future.
I don't understand why someone who would go long the T-Meds would then turn around and short the stock and I don't understand how that is arbitrage. I don't understand this logic. Can you explain your theory?
I get that the people who bought the TMEDs could short the stock and have already effectively covered at the higher price but why would anyone do that. If you short the stock down here around 3 but you bought the TMEDS at a 4 to 5 range then you are guarenteeing that you would loose money because you have effectively covered your short at a higher price (the cost of the TMEDS). You want to cover your short at a lower stock price or hope the company goes bankrupt so not sure exactly how this logic works.