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Today’s EMC Action

By GTM on July 30, 2008

We at GTM rarely post direct trading info, but this is worth looking at: Something unusual is going on with EMC. Today gave clever traders an options setup that can be hard to find. It’s where the next strike on the front-month contract, this one being August, is “cheap” and moves 500% in a day. [...]

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Short Interest Isn’t Full of Shorts

By GTM on June 12, 2008

Ever wonder who the short interest number represents? Turns out some of it is a market neutral strategy. Hedge funds will often short the underlying stock to stay price neutral on the bond, but are not short on the company. The next time you see issues for a Senior Note or a Convertible Bond keep [...]

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Do Options Really Move the Stock?

By GTM on June 10, 2008

Hence, we provide evidence that option market activity has a pervasive impact on the price paths of underlying stocks. In particular, the impact is not limited to times very close to option expiration. Furthermore, the effect is economically significant. The average daily absolute return of the stocks in our sample is 310 basis points and [...]

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