They just banned short selling in US

Yes, Banning short selling will not be the signal of a bottom.

After shorts are forced to cover, watch the market for these financials. Without shorts bidding to cover, these stocks can just dribble down day after day -- Chinese water torture for the longs of these stocks.
 
Quote from nitro:


As you may recall, 100,000 puts is the equivalent of a 10,000,000 short position in the CELG equity, since 1 option controls 100 shares of the underlying [at least in the US]. The results of the CELG tests are announced. In fact CELG does not have a cure for blood cancer, and the stock gaps down $30. They call an ambulance and I am carried out on a stretcher because I just obliterated my account [to say nothing of my clearing firm, since that was one of my positions of say in fifty to a hundred other underlyers, all also unhedged to the downside.] This scenario would become almost a weekly event on most options exchanges if option MMs are not exempted from the short rule.

nitro
More...

Nitro, as the market sinks, the SEC's stupidity grows. The entire first page and a half of the Orders could have been summed up "in an effort to prevent price discovery because we don't like the prices being discovered....."

Every options MM I know was beyond confused. Today, I heard a bunch of firms rebelled and refused to make markets at all. Don't know the legality of any of it, because I'm not a lawyer. However, it seems that the SEC couldn't hold them in breach because it breached the MM contract first by repealing their exemption. Contract law can be pretty specific. But who has time for picayune details like the Law when you're furiously pounding out an order at 3 am to burn down the house and everyone in it to save your own skin? My understanding is that options market maker restrictions are now lifted on everything but Reg Sho stocks (also dumb). Did I hear correctly?

And...good luck wading through this giant bucket of shit the SEC has plopped us all into.
 
Quote from nitro:

If you say that, you did not understand one word of what was said in the rest of the 500 words that you left out from that post in your quote of me.

nitro
More...

If the market-fakers are given hedging exemption to short, reversals that were pricing Friday at $2 or more everywhere in that list of 797 will be a multi-gazillion dollar windfall to the market-fakers. The exemption should be granted to ANYONE that is hedging DIRECTLY correlated derivatives - more specifically listed options and SSFs. If not, the reversals will continue to price at retarded levels making it economic suicide using any of these products to hedge a long delta.
 
Quote from arbs-r-us:

If the market-fakers are given hedging exemption to short, reversals that were pricing Friday at $2 or more everywhere in that list of 797 will be a multi-gazillion dollar windfall to the market-fakers. The exemption should be granted to ANYONE that is hedging DIRECTLY correlated derivatives - more specifically listed options and SSFs. If not, the reversals will continue to price at retarded levels making it economic suicide using any of these products to hedge a long delta.
More...

Cox and his denture wearing monkey friends are about as stupid as stupid gets.
 
Quote from lynx2004:

Yes, Banning short selling will not be the signal of a bottom.

After shorts are forced to cover, watch the market for these financials. Without shorts bidding to cover, these stocks can just dribble down day after day -- Chinese water torture for the longs of these stocks.
More...



can't short?

no big deal.

buy the inverse ETF's.
 
Quote from polarcyclone:

Who else is shorting the shit out of financials on Oct 2nd, or whenever this expires?
More...

100% chance of the stupid powers that be extending the deadline to past Oct 2nd.
 
Quote from sprstpd:

100% chance of the stupid powers that be extending the deadline to past Oct 2nd.
More...

You don't think they'll have this cleaned up again? I'm shocked. Watch this for as long as you can stomach it.

http://news.goldseek.com/GoldSeek/1222022373.php

It gets worse. Watch Europe. Theirs go to Jan 16. How can we allow it, and they not? That would allow all the shorts to come here and bomb UBS, RBS, you can come up with the names. Nope. Has to be in tandem. The Western nations are working together, for a change, so look for it to continue. Everybody is plenty scared.
 
You must log in or register to reply here.
Back
Top