T4P,
I have also been thinking about the options and the potential manipulation that can be used to pick up stock cheaply courtesy of the options.
I think your scenario 2 is feasible closer to expiry but just cant see it happening so far out. The stock is very liquid meaning the holders are fairly spread which makes it very difficult to manipulate the stock. Any major shareholder has to disclose there change of holdings, so if this was happening it would become obvious pretty quickly.
Scenario 3 is also feasible. It is a common tactic to build up fpo stock, then dump it whilst buying options, exercising options and doing the same over again, slowly building up your holdings without affecting the shareprice. Again I dont think its feasible at the moment as there seems to be alot more fpo trading than options and there really isnt a great deal of difference in shareprice anyway. It is usually a more useful strategy for a stock thats trading at much higher prices. Again the immense liquidity would make it difficult to manipulate.
I really have to conclude that there is really nothing at the moment to drive the shareprice up. It rose quickly, and is now taking a breather as short-term investors grow impatient. I'm sure when the cards are laid on the table and the company shows their direction, and assuming it is positive, the momentum will sway upwards again.
Cheers
T4P,I have also been thinking about the options and the...
Add to My Watchlist
What is My Watchlist?