Normally I don't comment and prefer not to down ramp in anyway on a stock I have decided to change directions on ( I have my reasons - shifting of ownership etc... etc.. ) so I guess in a way I still have a right to comment....and I wouldn't pass up the opportunity in throwing the good people on SYA who I have had great pleasure in working alongside for the last few months.
So here's how it goes ....and yes there are bigger forces at work behind in the world of stock market trading. Anyone who has watched Wall Street should know that.....even if Gordon Gekko is only a fictional character. Lets get one thing straight to start. There is no such thing as a fake order in the system. Block trades yes ( which I believe has already been mentioned by fellow poster. )
O.k so looking back on how SYA began its journey. We all remember the high volumes and the cheap deferred rights. Every person like myself ( and obviously the professionals ) knew this stock was going to rise and rise......almost parabolic in nature. The reason we knew this is that there was clearly a value lag and re-rate that was DEFINITELY going to unfold. Now some .....were caught by surprise by this move but for others it was always baked into the plan ( The research report and other info ) in part paved the way. Of course the commonalities across the industry ie similarities in charts ( which I did point out way back before anyone mentioned this ) . So the rise and rise was almost identical across the whole Li industry.....and therein lies the opportunity together with the uncertainties associated with this rise & rise. Then throw in SQM - a nice little catalyst ...and bada bing, bada boom ...you have the perfect storm and conditions to deploy the following strategy .
So what the pro's do and the option traders and market makers is employ whats referred to a Collar which is an options trading strategy that is constructed by holding shares of the underlying stock while simultaneously buying protective puts and selling call options against that holding. The puts and the calls are both out-of the-money options having the same expiration month and must be equal in number
The beauty of using a collar strategy is that you know, right from the start, the potential losses and gains on from a trade. Your returns are likely to be somewhat muted in an explosive bull market due to selling the call, on the flip side, should the stock heads south, you'll have the comfort of knowing you're protected.
Keep in mind folk's that this strategy would have been employed right up the SP increases at possibly many price points and is probably still in play atm ( due to the higher industry volatility ). Meaning the Big Guy(s) as there were at least 2 are still lurking IMO.....but are presently happy to see the SP trading in today's range of 7.2 to 7.9.
Sorry about the long winded nature of my post but the mechanics can be fairly complicated for some to get your head around. But in my mind it goes a long way to explaining the Huge Volumes traded in the SP rise to .12 cent . I did predict the rise right from the early stages to the high point because I knew of these practices and of course am also well versed in TA ..... and you all know what my views are in regards FA being the longer term determination's of value. Cheers to you all and hope you all do very well with your own individual strategies. Just be careful as the Chess Game has change yet the players remain the same. .....
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