JG etc.

In one of the weirdest days of trading I have ever seen, Rambus went from $44 to $29 and then back up to $39 in about a 2 minute span. In the end, no news was officially broke as it seems that the jury is still deliberating in the Rambus VS Hynix case.
From the Rambus Yahoo Message Board(very entertaining)…

In less than 2 minutes the stock fell from $44 to $29 and during this time, May 50 calls went from $4.20 to the lowest point of $0.05. Some lucky guy immediately bought shit load of those calls at $0.05 and in next 2 minutes, the stock was back up at $39 and calls were trading at about $3.00.

Whoever bought those calls, that is a 6,000% return in 2 minutes. Of course, the same kind of gain would stand for somebody who bought May 50 puts earlier today and wanted the stock to drop significantly only to sell those puts at 5,000% to 6,000% gain.

That is why I think the stock was badly manupilated.

One Day Chart

This is a great example of not only our controversial patent system, but also the amount of manipulation and greed that goes in option trading on Wall Street.

With April options expiring tomorrow, *expect Rambus to stay under or around 40, as the “manipulators”(the boys writing all those April 40 and 45 calls) get their wishes and the subsequent bettors are robbed again. Just like in Vegas, don’t bet with people that have more money to lose than you.

I am hoping that TechDirt will be covering this in its entirety.

*These are just my *paranoid* predictions, I have no money in it either way.