It's making sense to me now, actually. The market makers are large companies around the globe - NY, Hong Kong, London - each has a team of people working on this. Some are analysts which use very
sophisticated and elaborate models to set buy and sell points, others are buyers/sellers setting the price points. If you watch the pink sheet you will see the exact same people buying and selling at the very same time, typically in small 500 lots.
They purposely build up the price, and then let it drop immediately - like 20-30% in 15 minutes - because they know all of the day traders and amateur speculators don't have emotional control and will freak and prematurely sell. The market makers then take their profits and build it up again.
The icing for them seems to be, if what you are saying is true, they will sell a bulk next Monday, then build up again for the following Monday, and that might be the end of gmgmq in play.
The options for June expire on the 20th. ( Saturday )
The last day to trade them will be the 19th. Which is two Fridays from now.
If what we suspect to be true (that the market makers are inflating the stock to have the options expire worthless) then the market makers would close their long positions the day after the options expire - which would be the following Monday.
sophisticated and elaborate models to set buy and sell points, others are buyers/sellers setting the price points. If you watch the pink sheet you will see the exact same people buying and selling at the very same time, typically in small 500 lots.
They purposely build up the price, and then let it drop immediately - like 20-30% in 15 minutes - because they know all of the day traders and amateur speculators don't have emotional control and will freak and prematurely sell. The market makers then take their profits and build it up again.
The icing for them seems to be, if what you are saying is true, they will sell a bulk next Monday, then build up again for the following Monday, and that might be the end of gmgmq in play.
The options for June expire on the 20th. ( Saturday )
The last day to trade them will be the 19th. Which is two Fridays from now.
If what we suspect to be true (that the market makers are inflating the stock to have the options expire worthless) then the market makers would close their long positions the day after the options expire - which would be the following Monday.
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