Friday, August 04, 2006

Stock Option Granting was hot in the Tech Bubble of 2000... and why...

...basically, tech companies with no positive earnings or cash flow, would woo both the top notch, and rank and file employees in general, with total compensation aside from salary in stock options.... anyways, so AAPL launched its own stock option granting investigation, due to the SEC's new flavor of the summer, the 'backdating of options' some kind of Eliot Spitzer icing on the cake.... basically, it's backdating the options(always call options), to times when the stock was depressed. Thus, the options usually end up in the money. Net for Net, it's not a material effect on any companies bottom line, no more than 1-5%. But the Media Hype and Scare Tactic is to basically brand a scarlet letter on any stock that either has an official DOJ investigation or even a voluntary internal audit, but the Media brands it deeper than my fucking embedded white trash tattoos into the stock, and then there's a crazy sell-off. Now, AAPL alone, without news, is ridiculously volatile every fucking day, and provides crazy double edge sword opportunity. AAPL price action today literally fried my brain. Silver Lining, I know now that there is a Major Institution that has BUY ON CLOSE orders on AAPL, everytime AAPL is trading lower on the day.... I will thereupon buy AAPL everytime it is down for the day, at 3:15pm, and buy more at 3:30pm, and at the very least ride it for 100 cents.

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