244 after hours high … so far
I know I know, wait for the train to slow down before setting up a picnic on the tracks but I thought I’d put a few small, starter positions out there. Can’t wait to aggressively short this thing but we’re way too early for that. For now though:
Sold $GME 1/29 195 200 bear call spread @ 1.00
Sold $GME 2/19 190/200 bear call spread @ 1.50
Defined risk only of course.
#SPX1dte Sold to Open $SPX 3760/3780-3905/3925 iron condors for 1.05, SPX at 3857, IV 14.55%, deltas -.06, +.07.
Bought to open UVXY Jun 18 2021 4.0 Puts / Sold to Open UVXY Jan 29 2021 10.0 Puts $0.05 Credit.
UVXY = 10.50
Short DTE = 3
Long DTE = 143
Last week’s long Put purchase is free and clear after last Fridays short position cover @ 0.01
#SPX7dte Bought to Open $SPX Feb 1st 3835/3855-3865/3885 iron condors for 16.25, with SPX at 3857.
#ShortPuts – Filled on the last dip. Adding to Feb ladder.
Sold LABU FEB 19 2021 98.0 Put @ 2.60
I know some are playing options in these.
Overstock.com, Inc. (NASDAQ:OSTK) shares rose 22.4% to $82.48 as the company announced a partnership with Pelion Venture Partners to oversee the blockchain assets of its subsidiary Medici Ventures.
Beyond Meat Inc (NASDAQ:BYND) shares jumped 18.3% to $187.78 after the company announced a joint venture with Pepsi to develop, produce, market snack, beverage products made from plant-based protein.
Circuit breaker halt at 114
Has resumed now
From Yahoo Finance
….. But underneath the surface, one of the wildest trading days we’ve seen in some time broke out.
GameStop (GME) remained the day’s top story, as the stock continued its unbelievable run from the ~$4 per share range back in the summer to a whopping $76.77 as of Monday’s close.
In a story published Monday, Bloomberg’s Brandon Kochkodin chronicled the ongoing relationship between Reddit’s “wallstreetbets” (WSB) forum, and shares of the struggling video game retailer. In this story we find a fundamental case for buying the stock: A character from Michael Lewis’ famous book “The Big Short” (Dr. Michael Burry), an activist investor who also founded Chewy (CHWY), and along the way a redditor named “Senior_Hedgehog” plays a major role.
Truly a tale for the modern market.
As Yahoo Finance’s Ines Ferre has chronicled, the last handful of trading sessions have centered on the clash between WSB and GameStop’s short sellers. This saga continued on Monday.
But during the session, we also saw the breakout of a market-wide strategy to pile into names that investors are betting against en masse. According to data from FinViz, more than a dozen stocks with more than 30% of their outstanding shares sold short rallied more than 10% on Monday.
In other words, betting on companies that lots of investors are betting against was the biggest driver of single-stock moves to start the week.
Shares of La Croix-maker National Beverage Co. (FIZZ) rose more than 13% on Monday; more than 60% of the company’s stock is currently being sold short.
Some retail-related names were also caught up in this trade, as mall REIT Macerich (MAC) saw its shares rise more than 21% on Monday, while shares of Macy’s (M) were up 10%. More than 30% of both companies’ shares outstanding are currently sold short.
However, not all efforts to blow out the shorts succeeded on Monday.
Bed, Bath & Beyond (BBBY) — which has a short interest north of 60% — gained 1.5% on Monday, but not before some chicanery that saw shares rise as much as 50% in late-morning trade. Shares of BBBY, we should note, are up some 200% over the past six months.
And not every single-stock surge on Monday was tied to huge short interest. BlackBerry (BB), for instance, saw its stock spike by some 28% to start the week — causing the company to issue a statement explicitly stating that it had no news to report, and therefore no explanation for the rally. Just about 7% of BlackBerry’s outstanding shares are currently sold short.
Which brings us to beleaguered retailer Express (EXPR).
With a market cap under $100 million before Monday’s trade, this is a name that rarely gets much attention in the broader market. But a 131% rally to start the week changed that.
Before Monday’s open, Express shares were rocketing and the stock didn’t move all that much after the open. On Friday, the stock closed at $1.79 per share; on Monday, Express shares closed at $4.15.
Rarely does this kind of move come and go without explanation. But on Monday, the media and Wall Street analysts were left scratching their heads to explain this one-day double of a 1990s-era suburban mall staple.
“Express has been the subject of Reddit boards where users speculated [about] whether it could be the next GameStop, the video-game retailer that surged again today,” Bloomberg reported on Monday.
Leading everyone right back to where this day started: Reading Reddit and looking for the next big thing.
#ShortPuts – Was going to do this yesterday on a down day but wanted to see a bounce first. Rolling up to the expected move and to the 20 day moving average. Still below the earnings gap.
Rolled NFLX FEB 19 2021 510.0 Put to FEB 19 2021 525.0 Put @ 2.60 credit (6.20 total now)
#ShortPuts -Thinning the herd almost 4 weeks early. These were filling at better than the mid so went ahead and took them.
Bought to Close TQQQ FEB 19 2021 95.0 Put @ .42 (sold for 2.20)
Bought to Close TQQQ FEB 19 2021 100.0 Put @.50 (sold for 2.20)
Bought to Close TQQQ FEB 19 2021 105.0 Put @ .70 (sold for 2.40)
Bought to Close TQQQ FEB 19 2021 110.0 Put @ .70 (sold for 2.10)
Bought to Close TQQQ FEB 19 2021 115.0 Put @ .90 (sold for 2.40)
Bought to Close TQQQ FEB 19 2021 120.0 Put @ .98 (sold for 2.94)
#Earnings – For anyone interested in this one it looks like earnings are now tomorrow after the close…
#ShortPuts – Replacing the ones closed yesterday.
Sold LAZR FEB 19 2021 27.0 Puts @ 1.30