Wow. All of Normal, Mn. is buzzing today as the news broke on the CNN news ticker. It seems that the city administrator of Normal, Mn. devised a new economic development strategy. With just his quiet reflection time reviewing the city assets, which consisted of some room tax receivables from the "Billy Bob Motel and Deli" which were of ...questionable status regarding collectability...he devised a combination of calls and puts on the local stock exchange and in a series of hundreds of small quick trades utilizing a antique Apple II computer, he outfoxed the entire stock exchange and made millions for local good works.
In reviewing the trades, and yes they are still trying to figure out how he did it, normally when a call and a put are combined, it is called a spread....and folks in the know are thinking they might just call this the "Normal, Mn. Bull xxxx Spread". It follows the national pattern of taking something essentially worthless, pump it with hype and public relations and "buzz" and then trade it to excess and take the cash off the table on each trade.
I am trying by best to diagram the trade sequence, and as soon as I can make heads or tales of it, I will write further...stay tuned.
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