High volume, extremely narrow trading range - why?

L

loufah

DELL's buyout was approved. It has spent the last few days trading millions of shares with a daily trading range of just one cent - $13.83 to $13.84.

Why are people trading this with such high volume?

Options volume is almost nil - just a few $13 puts being traded for a penny or two, so it doesn't look like people are expecting any significant movement.

So are people just churning the stock to get rebates or something?
 
Quote from loufah:

DELL's buyout was approved. It has spent the last few days trading millions of shares with a daily trading range of just one cent - $13.83 to $13.84.

Why are people trading this with such high volume?

Options volume is almost nil - just a few $13 puts being traded for a penny or two, so it doesn't look like people are expecting any significant movement.

So are people just churning the stock to get rebates or something?
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It's because retail investors are holding inverse ETFs.
 
Quote from gmst:

can you please expand on this? Thanks.
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Sure. I'm glad you asked.

Well, it's like this: somebody once offered me a bunch of kool-aid and I drank it all and went back for seconds.
 
Quote from billyjoerob:

arbitrageurs. picking up a nickle ahead of the close of the buyout. final $13.88 price.
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Logically inconclusive. Yes, those are in there, but they can not work without "real" volume underlying their trades.

I would assume some companies dump their holdings now - and some arbitrageurs pick it up to sell it for 2 cents profit down the line. Unwinding long term positions - makes no sense to keep the stock when you know the fixed exit price. Stuff like that.
 
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