On Jul-16-2013 there is a price gap from 2.92 to 3.29. All gaps gaps close eventually. We may see $2.92. There is also a down gap now on Dec-05-2013 from 4.33 to 3.83. That also will eventually get closed. This cleans up the chart. Unfortunately some of us missed the opportunity to hedge.
When they let it run, they will let it run fast, to the next trading range, where they will again exploit premium. They have not had the options market to generate cash for quite a while. 90% of options expire worthless, the MM's can generate a steady stream of income from high beta stocks selling premium IMHO. Hammer today on high volume, closing under $5 IMHO.
That headline should suggest a bright future for solar across the entire Asian Region IMHO
King, almost all the options sold by the MM's are naked. There are very few retail accounts approved for naked option trading and MM's don't take positions. Just as many of the actual shares sold by the MM's are sold "naked", the just have a 13 day window to cover them (I'm sure they all follow that rule, right), so they don't create supply/demand imbalances. Naked selling by the MM's is a function of keeping a fluid market. It is however often abused IMHO.
Shares will also need to be delivered today by all the naked call sellers. That is mainly the MM's, as few retail traders sell naked options.
Option sellers are definitely the MM's. Few people sell naked calls or puts, most retail accounts forbid it. There is much cash to be made monthly exploiting option premium. That market has not existed with solar for years. It has just now become fruitful again for the MM's. They will manipulate OPEX to some extent, as long as price stays above $5.00 IMHO. At that price and higher, they can sell a lot of premium every month.
I think they drop it below $5.00 by EOD as at that point the max amount of premium expires worthless. Yes MACD is turning down. This pull back will set most price indicators back to neutral IMHO.
will they get it there? This is pure manipulation. The stock will drift to real valuation soon IMHO. For the past year the MM's have only made money shorting the stock, as price was too low to exploit the option market. Now as it seeks higher valuation, they will sell premium and let the stock run between expiration cycles IMHO.
Most sellers are the MM's, as most accounts don't allow for naked option sales. I would look at this from the perspective of the MM. Generally they want to run it up, sell premium and walk it back to max pain by expiration. IMHO. The best way to hedge a run up is to sell covered calls for that very reason.
Reaalllly....I don think it was The TEA Party that gave exemptions and wavers to their "Lobbyists & Corporations". Liberal Demonrats are the real corporate shills! big government, big business, big finance, big union and the trial lawyers lobby, right, they really care about the middle class, laughable.