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NorthStar Realty Finance Corp. Message Board

  • newguy7001 newguy7001 Jul 23, 2013 5:46 PM Flag

    Today's (Tuesday) Short Volume Number 356K

    That is the highest number in the past 10 days. It boggles the mind as to why they are shorting into the dividend?

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    • Check out the Dec $10 puts: over 3000 contracts today. Someone is betting that this will fall to below $9. (I'm long and perfectly good with holding for the dividends.)

      • 1 Reply to sonnenwayne
      • Could also be (the seller) somebody willing to buy at 8.90 (10 strike - 1.10 option premium) or happy to pocket 1.10 if put expires worthless. Seller could be a short willing to cover at 8.90 and happy to have 1.10 to offset his underwater position if option not exercised.

        I think the buyer has a screw loose. Short monkey being the buyer would not surprise me.

    • I think they are trying to keep a lid on the price. A secondary discount from 10.00 is cheaper than a like discount from 10.75. Hamo's job is to make money, not punish shorts. If he needs common equity to make accretive investments, the fact that a secondary gives shorts a massive cover buy without a spike will not deter him.

      Shorts have dug themselves into a deep hole, which is going to get deeper with the dividend and new cad estimate. They need a nrf bombshell, market meltdown or interest rate spike to get sufficient sell volume to cover. Without that they need a secondary. Otherwise, there are 30 million short shares going deeper under water without the sell volume to avert a squeeze. Death by a dime a day or death by a massive squeeze. Ugly choices.

    • I have no idea what shorts are thinking. Are thy averaging up for the next stock issuance. It looks too obvious to be real.

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