Daniel Moser

Hedge Funds Finding New Ways to Short

The synthetic short idea works if you have the timing down. The interesting thing about it is that puts should be incredibly overpriced right now because the market makers (short put positions) cannot be hedged currently. So, here is an idea take a couple million dollars and go buy a ton of puts towards the end of the short selling ban, watch what happens when all the market makers rush to hedge their delta/gamma positions. The government could potentially put a lot of market makers out of business because they won't allow them the ability to properly hedge their positions.

Disclaimer: I do not support market manipulation. However I just happen to see a hole in the system in which big players may have the ability to crush certain market participants with regard to options trading during a short seller ban.