On the subject of sinking high flyers, I bring you DRYS.
Geez, you truly get no happy medium in these things. Straight up pretty much for 6 weeks. Followed by a nice little 25% repricing down in a two weeks.
And again, unimpressive options action. Remember that lesson you hear on TV every day, where volatility moves inverse to stocks? That's always true, except never.
OK, that's an exageration. But volatility virtually always declines in bubbly stocks as they decline. The Tech Bubble melt up of 1999 and melt down of 2001 are the perfect examples, but it's a story that gets repeated over and over again.
Geez, you truly get no happy medium in these things. Straight up pretty much for 6 weeks. Followed by a nice little 25% repricing down in a two weeks.
And again, unimpressive options action. Remember that lesson you hear on TV every day, where volatility moves inverse to stocks? That's always true, except never.
OK, that's an exageration. But volatility virtually always declines in bubbly stocks as they decline. The Tech Bubble melt up of 1999 and melt down of 2001 are the perfect examples, but it's a story that gets repeated over and over again.
I did buy some gamma here (small) yesterday, but more because it feels like something has to give here in the stock real soon. Either a move to the 50 day, or a pop off the fugly RSI (2).
But longer term, it's just like POT yesterday. You want open ended and terrfied shorts, not a range.
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