Would it make sense to shadow a trade like the PCS option play above at a 10 contract pace. You invest $13,000 and collect $17,500 in 8 months for a annualized 50% return. It appears this investor has enough clout to manipulate the stock and guarntee a $17.50 price in Feb2010. I also noticed the volume was almost double the daily average. I can’t figure out why he didn’t just buy the stock for $11.80 before he manipulated the price up in order to lower the option cost. The only conclusion I can come up with is that he used OP money to manipulate the stock and his own money for the option play.
Would it make sense to shadow a trade like the PCS option play above at a 10 contract pace. You invest $13,000 and collect $17,500 in 8 months for a annualized 50% return. It appears this investor has enough clout to manipulate the stock and guarntee a $17.50 price in Feb2010. I also noticed the volume was almost double the daily average. I can’t figure out why he didn’t just buy the stock for $11.80 before he manipulated the price up in order to lower the option cost. The only conclusion I can come up with is that he used OP money to manipulate the stock and his own money for the option play.