Convertible Debt Selling. I believe the convertibl
Post# of 1674
Posted On: 05/11/2016 7:26:05 PM
Convertible Debt Selling. I believe the convertible debt sellers have a daily or weekly quota. If people don't take the hint and slap the ask at the level they set, they make some sells into the bid - ranging from 2M>20M. I believe the funny 5-figure decimal place prices are pre-arranged between MMs - with another buying it to flip himself later. I observed this many times last year and earlier this year.
Even happened when it was .0001 x .0002 - when there was a big sell into the bid - it sometimes exceeded the bid without .0001 switching over to the ask.
They seem to be happy with around 50M at the same tick on the ask for 2 days then VFIN moves up. If too many one-tick and two-tick flippers stack the ask at .0006 - like happened today with 49M - people who can flip for one tick undercut the ask at .0005 through a retail MM - then VFIN moves down again so that someone doesn't steal his customers !
If I'm right, we should see buys going through at .0006 tomorrow. This will be more likely if the ask is 20M or less.
Considering that I don't believe that there is a lot of "new money" adding yet, getting an .0001 rise every 2 days on about 100M is fine by me.
You also see how the 2nd day after it first upticks, people get more confident that they will not get filled 2 ticks down on the bid and they move their bid up - hence 47M .0004 x 49M .0006 at times today.
$REDG
Even happened when it was .0001 x .0002 - when there was a big sell into the bid - it sometimes exceeded the bid without .0001 switching over to the ask.
They seem to be happy with around 50M at the same tick on the ask for 2 days then VFIN moves up. If too many one-tick and two-tick flippers stack the ask at .0006 - like happened today with 49M - people who can flip for one tick undercut the ask at .0005 through a retail MM - then VFIN moves down again so that someone doesn't steal his customers !
If I'm right, we should see buys going through at .0006 tomorrow. This will be more likely if the ask is 20M or less.
Considering that I don't believe that there is a lot of "new money" adding yet, getting an .0001 rise every 2 days on about 100M is fine by me.
You also see how the 2nd day after it first upticks, people get more confident that they will not get filled 2 ticks down on the bid and they move their bid up - hence 47M .0004 x 49M .0006 at times today.
$REDG
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A very apposite motto for those who trade successfully in the OTC market..
All posts are my opinion - trade at your own risk.
A very apposite motto for those who trade successfully in the OTC market..
All posts are my opinion - trade at your own risk.