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I agree on the premise of moving the market but they don't necessarily need to be only short sellers, they could have hedged both ways and still made money. Th
by an4rchy 9y ago
I agree on the premise of moving the market but they don't necessarily need to be only short sellers, they could have hedged both ways and still made money.
They could have exercised puts if it went down (which it did in the morning) or bought stock/calls both before the site release and in the case of it going down because they knew it wouldn't be a concern or dispelled by AMD.
Unless, this is truly a flaw and in that case, they can still buy more puts and just wait for AMDs official response.
- notadaytrader 9y agoWhat if I told you you can lose money on straddles and bear spreads.
- an4rchy 9y agoAgreed on the losing money part, in general, but in a stock as volatile as AMD, I feel like there is an opportunity for this type of action, may not be the case for others. Also, as nothing has been verified about the report (from AMD), there is still the potential for this to move either way. Great username BTW