or be crushed! Read the 2nd link.http://daringfireball.net/linked/2013/01/18/500Remember the piece I linked to earlier this week, wherein Joe Springer pointed out (all the way back in November) that large institutional investors who’d sold options on Apple’s stock back in the summer stood to profit by billions if AAPL closed today at $500 or under? It closed at $500.00.http://seekingalpha.com/article/1002601-buy-apple-on-january...
or be crushed! Read the 2nd link.http://daringfireball.net/linked/2013/01/18/500Remember the piece I linked to earlier this week, wherein Joe Springer pointed out (all the way back in November) that large institutional investors who’d sold options on Apple’s stock back in the summer stood to profit by billions if AAPL closed today at $500 or under? It closed at $500.00.http://seekingalpha.com/article/1002601-buy-apple-on-january......Is this legal?
So basically what the author is suggesting is that - for a lack of a better term - there was more or less a "conspiracy" by certain institutions to keep the the lid for such a long time on a stock as large and as widely traded as Apple? And they succeeded to the very price point at $500? I don't doubt this can be true, but if true this is a very scary proposition. I understand stocks can easily be manipulated in very short time periods. But for weeks and months? On a stock with this sort of liquidity? Really?I guess this explains the "planted" news stories to confuse and cloud apples quarterly prospects and future innovation? And it explain also how a stock with Apples growth prospects can mysteriously trade at such a ridiculously low PE?
But for weeks and months? –––––––––––––Considering most industry analysts still think Apple's success is based on being 'Cool' and could collapse at any moment and have for years, it's easy enough to get them to buy nearly any poorly constructed rumor regardless of how little information you have to back it. Consider the above post about the Nexus having more market share than the iPad. The source is a foreign language newspaper that few people bother to translate. The original source doesn't say how they gathered confidential sales numbers from Apple and Google, it's just taken on face value as fact and people debate the repercussions.
So, Joe Springer would have us believe that most of the top 15 institutional owners of the stock (since November?) have secretly synchronized their selling and buying of options until they on January 18 singlehandedly manipulated the stock to hit $500 precisely. Really?So, these must be the bandits,http://investing.money.msn.com/investments/institutional-own...This is a neurotic disorder called (for lack of a better word) CONSPIRA-NOIA. It's even worse than - you know what,which is a belief that explains an event as the result of a secret plot by exceptionally powerful and cunning conspirators to achieve a malevolent end.According to political scientist Michael Barkun, the appeal of conspiracism is threefold: First, conspiracy theories claim to explain what institutional analysis cannot. They appear to make sense out of a world that is otherwise confusing. Second, they do so in an appealingly simple way, by dividing the world sharply between the forces of light, and the forces of darkness. They trace all evil back to a single source, the conspirators and their agents. Third, conspiracy theories are often presented as special, secret knowledge unknown or unappreciated by others. For conspiracy theorists, the masses are a brainwashed herd, while the conspiracy theorists in the know can congratulate themselves on penetrating the plotters' deceptions. (Wikepedia)
Why in the world would they have to conspire?They share only a common interest. To have options expire worthless.Which the majority of options do.If every option writer has the same goal there is no need for anything resembling a conspiracy.They are all working towards the same goal independently.
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