There is virtually no carry over short positions i
Post# of 30066
Posted On: 12/18/2014 12:46:16 PM
Re: Loco motion #13365
There is virtually no carry over short positions in AMBS. The latest report on November 28th (Dec. 15th will be out soon) has a grand total of 129,026 shares short which is $10,322.08 @ .08 cents. All of the shorting is intraday and covered before the bell.
A big misconception of intraday shorting is also people trying to drive the price down. That is not always the case either. When a market maker receives an order for shares that they do not have, they have to sell them anyway (which is shorting) netting them a short position. (Which in this case if it is AMBS, has been covered intraday.)
I doubt this is going on with the market makers in an OTC company though. The only time that happens is if a "huge" client wants a massive block of shares and the market maker has no choice but to deliver. If they don't deliver, that client will never use that MM again for shares.
Most of the intraday shorting is probably just opportunists taking advantage of the huge spread, shorting at the ask and covering at bid. And since impatient short term shareholders are not in short supply, it seems there are an endless amount of fools dumping at the bid allowing the arbitrageurs to continue this day in and day out.
A big misconception of intraday shorting is also people trying to drive the price down. That is not always the case either. When a market maker receives an order for shares that they do not have, they have to sell them anyway (which is shorting) netting them a short position. (Which in this case if it is AMBS, has been covered intraday.)
I doubt this is going on with the market makers in an OTC company though. The only time that happens is if a "huge" client wants a massive block of shares and the market maker has no choice but to deliver. If they don't deliver, that client will never use that MM again for shares.
Most of the intraday shorting is probably just opportunists taking advantage of the huge spread, shorting at the ask and covering at bid. And since impatient short term shareholders are not in short supply, it seems there are an endless amount of fools dumping at the bid allowing the arbitrageurs to continue this day in and day out.
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