If what Fractal Flow - Pro Trading Strategies says in the video below about how banks actually trade is right, then the reason the percentage of short position increased sharply around October when PLS share price had started going into the trading range is because trading range is the ideal condition - it has volatility but the up and down are within certain limit which provides some predictability - for some traders to profit when the sp goes up and when it goes down.
They came in knowing the down trend was over and accumulation phase began. Their aim is to profit from the volatility. And accumulation phase is always within a trading range and very volatile. Moreover, PLS has a relatively high level of liquidity. So PLS (in accumulation phase) is the ideal stock for these traders.
What they do to profit however the sp moves (up or down) is to buy call options and at the same time shortsell the stock. Watch this video how they do it:
If what Fractal Flow - Pro Trading Strategies says in the video...
Add PLS (ASX) to my watchlist
 (20min delay)
|
|||||
|
Last
$3.98 |
Change
0.010(0.25%) |
Mkt cap ! $11.97B | |||
| Open | High | Low | Value | Volume |
| $4.05 | $4.07 | $3.97 | $50.51M | 12.60M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 6 | 135433 | $3.98 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $3.99 | 41565 | 4 |
View Market Depth
| Last trade - 16.10pm 15/05/2024 (20 minute delay) ? |
|
|||||
|
Last
$3.99 |
Change
0.010 ( 0.05 %) |
||||
| Open | High | Low | Volume | ||
| $4.04 | $4.07 | $3.97 | 3189143 | ||
| Last updated 15.59pm 15/05/2024 ? | |||||
| PLS (ASX) Chart |