Hey guys, there are a few things I can't wrap my head around and I was hoping someone with more knowledge could help me out.

Over on yahoo, down_set_hut_hut posted:

"Keep in mind there are many millions of "golden tickets" out there in the form of warrants to purchase shares at 2.60 through Oct 2012. There are many millions more to buy at 2.40 through early 2016. Of course, there are also many millions in call options (25 million shares represented by ONLY the Jan 2014 open interest). So, many of those short or shorting can be short against warrants or options that they hold, not having to cover in the market. They can simply exercise warrants/options to deliver against the short."

This isn't the first time I have heard about heavily shorting against warrants. Is this purely a hedge? What am I missing here? What's the tactic? Why wouldn't someone who was fortunate enough to buy the warrants simply be happy with an ever escalating stock price, pay the $2.40 when it is due, and ring the cash register on the way out the door? The term "not having to cover in the market" clearly has some benefit that I am missing.

My next question has to do with the ATM sale. Speculation was that we were ground to a halt at $4.00 because we were getting through the ATM. No mention was made of it at the CC and now it is believed that it hasn't started yet. I guess I don't understand how an ATM works. I assumed it was a behind closed door offering much like warrants and other offerings that retail investors don't have access to. My thought (please correct me if I am wrong) is that you sell your tens of millions of shares to long hedge funds and move on. Unless they turn around and instantly hit the open market with those shares (why would they, they just bought them for an at market price) then there wouldn't be enough selling pressure to really affect the price.

I saved my most newbish question for last. I have never written an option so I never cared much about how the "back end" works. I have never carried an option through to expiration either. However, I think I'm in for the long haul with my $5 Jan '14 calls. Just making up numbers, say I have 100 call options. All I know that come middle of January someone owes me 10k shares, and I owe them $50k cash. That's the furthest I ever thought it. However, as down_set pointed out, if there are 24 million shares at play, things get a lot more interesting. Provided of course that these shares are in the money, where do they come from? Does the person who wrote them have to cover at market upon opex or did s/he have to already own them before they can write an option against them? If they have to cover does this create a version of a short squeeze? Will it create a dogfight at key strike prices (especially $5)?

Thanks as always,

Stizz

I am also trying to find this so I can read it again. Anyone have it saved?

Hey Baba,

Thanks, as always, for the chat. I think I'm going to stick it out. Fortune favors the bold as they say. I'd love to protect my gains, and thanks for the advice on a way to do so, but I think I'm just going to let it slide.

I think the next few days are going to be very interesting. If we don't find out any story about whats going on in the background, then we very well may give some of it back. In the grand scheme of things, a bump in the road along the way isn't a big deal.

As far as the buyout is concerned, I actually think that would be my preferred method. Just sign on the line, so to speak, and collect your check. Sounds good!

I either need to sell and head to the sidelines for a little bit, or just unplug and not watch this stock like a hawk for a month or so. I have shown no ability to unplug...

I just don't know. If we get a 10% retrace, that's $0.45. I know all of you here remember when $0.45 was considered an absolute boss move in one direction, and I'm sure it represents a rather large sum of money to most of you.

I haven't had a lot of success in the past picking a high or a low, and it seems very foolish to snub my nose at investors flooding into this stock. I am also one of those people that believe that the big boys always know something before the little guy, and now I live in absolute terror of missing a huge pop if an unexpected catalyst happens and I am on the sidelines.

I'm leaning towards taking my haircut if one is upcoming and just waiting it out. I've never been a part of something like this, and am in completely uncharted waters.

lol you drunk Deez? Was that message meant to be posted here?

I agree with opc on the whole god angle. We get it guy, you're religious. Good for you. It really is off-putting to hear an athlete (especially one with such a checkered past) preach down to you. What's he trying to accomplish? Religion is like politics. You are never, ever going to convince someone to change their mind on what they believe. All talking about it does it piss off people on the other side, accomplishes nothing, and ends up being divisive.

That being said, I think we can all agree that those filthy dems are running the country into the ground, Barry is ruining not only our lives but our kids, and the villification of anyone who opposed them by the media is staggering!

Ha!

*runs*

P.S. I'm hot every night

I was going to see if you wanted to bet 50 shares on the game. I wish I did. I'm still rooting for the Ravens, but I'm not too excited about it. I've got a good buddy in Baltimore who is real excited obviously. I may catch a flight out there for the game. It's a pretty fun city and I'm sure it will be electric.

Sorry about your pats. You think Welker will be back? You want him back?