mng246

Why GM Is Ready for a Rebound

Missing one sentence:
I believe some MM is trading GMGMQ among themselves to keep the price up. This gives an illusion that GMGMQ is part of the new GM company as endorsed by this article (can you tell why?). This sucks in some ignorant small investors hoping to make a big profit when they are actually paying the shares that will worth nothing soon. Please note there is no shares available for small investors to short or it is very expensive to borrow. So you and I cannot profit from this trading. By keeping the price up the big institutions can unload whatever they have to the small guys. This is another WS scheme.

Why GM Is Ready for a Rebound

I believe some MM is trading GMGMQ among themselves to keep the price up. This gives an illusion that GMGMQ is part of the new GM company as endorsed by this article (can you tell why?). This sucks in some ignorant small investors hoping to make a big profit when they are actually paying the shares that will worth nothing soon. Please note there is no shares available for small investors to short or it is very expensive to borrow. By keeping the price up the big institutions can unload whatever they have to the small guys. This is another WS scheme.

Berkshire Hathaway Meeting and Some Options Strategies

This is not much different from selling covered calls. Normally the calls give a slightly better premium than the puts, thus balancing out the interest earned from T-Bill. Advantage is that covered calls are less complicate to match the timeline with option expiration dates and if you are 'luck' to keep the stock over a year you can claim a long term gain for tax advantage. One thing we cannot match WB is the premium we can get from either options or preferred stocks/warranty -like the deals in GS and GE, and the extra long SP500 Put.

Are Short Sellers to Blame for the Financial Crisis?

Short sale with borrowed shares is not much different from naked short sale. Consider this: Investor B borrow from Investor A and sell the shares to Investor C. Then Investor D borrow from Investor C and sell the SAME shares to Investor E. Now you have three NET owners Investors A and C and E for the same shares (that is right, two additional phantom shares created here) from the two net short sellers B and D with the same borrowed shares and they are not considered 'NAKED'. Repeating this cycles many many times over and you can bring down any weak company. That is what happens now.
IMO you cannot have short sales unless any shares can be borrowed and sold only once. They need to register the actual share (serial number) for these short sales, and I do not believe this is the case now.
Please comment if you think this is not how it works. Thanks.