Hi lakota6,
The other theory to consider, is that we have "Put and Call Options" or a "Contract for Difference" set-up. This could explain some of the large buys and sells taking place on a consistent time-frame. You could put in a 3 month or higher timeframe for the "put" or "call", whereby you are gambling on the price going higher or lower.
This trading is normally done by experienced traders, who trade with blue chip stocks that have a predictable and regular trading pattern. Speculative Stocks or Start-up companies can have huge swings one way or the other, which can create a potential windfall for that investor.
I would not recommend this form of trading unless experienced in the way the Stock Market operates.
The way that a CFD or "Put/Call Options works is:
a. A call option is the right to buy,
b. A Put option is when you want to sell.
A Put, is the option to sell the underlying stock at a predetermined price until a fixed expiry date. The put buyer has the right to sell shares at the strike price, and if he/she decides to sell, the put writer is obliged to buy at that price.
This is a delicate form of trading that requires a high level of knowledge to avoid any traps.
DYOR GLTAH
Cheers Rubes
Hi lakota6,The other theory to consider, is that we have "Put...
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