The "daily Call" From Option Alpha: Options Trading | Stock Options | Stock Trading | Trading Online

Hey everyone. This is Kirk here again at optionalpha.com and welcome back to the daily call. Today, I’m going to try to hopefully help you completely avoid pump and dump scams because I think they are still running rampant in the market and I can't believe these are still around. I can’t believe people are still getting sucked into these. Let's first describe what pump and dump is. I think actually, Timothy Sykes actually probably has been the best at making money from these in the opposite direction. I’m not saying he’s pump and dump. I’m saying he's probably totally the opposite of that. He’s trying to make money in the penny stock space by identifying which ones are pump and dump and then trying to trade the opposite side. But pump and dump is just this idea that you get a potential penny stock and it usually happens in penny stocks (not that it can't necessarily happen in regular stocks, but it's much easier to manipulate in penny stocks) where you get this huge run-up in the price because these promoters