Are Shorts Still in Control !?!?

[johnwgrant]

The weekly options tomorrow (4/26/13) will give us a peek at how much control the Options Market Maker has....

There are 5,000+ options with strikes $82.50 and higher which will expire worthless if the stock closes below $82.50.    There are essentially zero puts open corresponding to these stikes.

So, the 5,000+ options represent over 500,000 shares that no one will need to deliver IF IOC's share price is 'controlled' into the close tomorrow.   In addition, there are another 1,250+(corrected at 5:10pm) options at the $80 strike that can be "zeroed out" if the price is pushed below $80/share.    We know the stock price is manipulated on a repeated basis.   Let's see how tomorrow demonstrates who is in control of the stock price?!?!?

PS: all option open interests that I am using are before today's activity is factored in.   So, some of my number may be off - either low or high !  Activity today was about 1,800 options in the $82.50 and above strikes.    The $80 strike saw 346 options trade today.

[johnwgrant]

OK - less than 1 hour to go. Options Market Maker seems to be firmly in control.

Don't know if they will force it down to $80 for the close - they earlier got it down to $79.50 and may have cleaned up any calls that were outstanding at that point.

So, we wait until the powers that be make a move up or down.... BTW, I vote UP !!!

[jft310]

I like the dips we bought more June $70's calls. Keep it up.

[calaban48]

Thank you for that superb analysis, Mr. Grant. It was timely and persuasive, and it granted me a certain comfort zone when we dipped to $79.56 this morning. What they are doing is so transparent on the tape. I cannot believe the authorities are unaware of the blatant manipulation. Further, I cannot believe it is legal.

I still do not know the true story of Phil Mulacek's "retirement" decision, nor do I fully grasp the ramifications and rationale for the new shareholders rights move. I have confidence in the resource, and in the level-headed diligence of my co-investors here.

Thanks again.