puts (which expire in ~3 weeks) are screaming higher. I'm talking about the deep out of the money puts for some of these high interest names. But this post title included gamma and fiduciary duty. That covers the shorting and hedge fund degrossing / spreads blowing out. So pick your shot if there's one you like and take it. Either way, I suspect you'll be happy with that move when things normalize. If you're long one of those situations, take advantage of the price weakness to add a little (if it's one of the names down), or maybe take advantage of the rip to trim some or sell some super high vol calls (if it's one of the names that's ripping). Or there are plenty of popular hedge fund shorts that are ripping as they get frantically covered. Plenty of popular hedge fund longs are way down for no reason other than they are popular. Hedge funds across the board are clearly degrossing. Heck, the opportunity doesn't even have to be in the parent / stub trades. He promised to spin it off later this year having VMW up gives Dell more options for the spin off (like selling some shares in front of the spin). You know they'll spin ANGI out at some point! If you think you can trust Michael Dell, have Dell down while VMW is up is awesome. If you like the ANGI story, having IAC flat while ANGI is racing is a gift. They will absolutely buy back shares and close the gap at some point. I thought you said there was opportunity." And the answer is there absolutely is! If you believe in the Liberty team, buying LSXMK down 5% while SIRI is up is a gift. You're probably thinking, "thanks for the advice, gramps. If that happens, you're going to get your face ripped off.ĭo not short anything that can get squeezed. If SIRI really rips, there's no reason it can't trade to $20 while LSXMK drops to $25 or $30. Similarly, you might be thinking "how big can the LSXMK / SIRI spread get? I should put some of the spread on" The answer is it can get bigger. Now it may hit $400 by the time I post this. People thought there was no way GME could hit $100. You absolutely cannot be short anything with any potential for a squeeze in this market. Maybe you see the insane vol at AMC or GME and are tempted to sell some naked deep out of the money calls. So, while reminding you that nothing on this blog is investing advice, a word of caution: you might see those spreads blowing out and be tempted to trade around them. Any parent / stub type trade is getting demolished Liberty Sirius (LSXMK) is down 5% while SIRI is up 5%. But the current squeeze goes way beyond that. The headliners here are obviously the other high interest stocks (AMC, TR, etc. Every other stock that has any type of short interest is blowing out. What's so crazy is what the GME short squeeze is doing to other stocks. This is what happens during short squeezes the GME short squeeze hasn't even approached Porsche / Volkswagen levels yet. A truly epic short squeeze, but a short squeeze nonetheless. I've been tweeting out tons of fun facts about them (their stonk now massively outperforms Berkshire go ing back decades, thei r largest shareholder could become the richest man in the world by next week, and t he Switch I bought last month would be worth way over $5k if I had bought stonk instead).īut honestly- Gamestop's stock price isn't that crazy. The headliner for craziness is obviously GameStop (GME). Nothing, and I mean nothing, comes even close to how crazy the market is today (speaking of nothing: nothing on this blog is investing advice! buyer beware!). I can't remember the dotcom bubble, but I have some memories of the financial crisis (it happened when I was first starting to invest) and can remember plenty of weird markets including the drawdown in early 2016 (which hammered growth / tech stocks), the meltdown of late 2018, the pandemic sell off in March 2020, and several other weird moments (remember when the U.S.
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