Huge short position and a MM that doesn't want it to break out before options expirations.
No volume for shorts to cover, will they start to panic before the weekend?
I have no crystal ball, but what I do see is $50.00 short term then a pull back if so I will add to my position and hope for 70 in the next year.
My concern is with such a heavily shorted stock What am I missing???
Can all these shorts be wrong?
Why are shorts not posting on this board? If any one is short please be kind enough to enlighten me on why I should not be long.
Thanks and good luck to everyone long or short
i had so much fun with my calls today. it was like being thrown in a tub full of profitteroles. i did not know what to eat, chocolate, whipped cream or bigne'. hmm doubled my trading portfolio in three days.
First resistance I see is at 45.66 then 46.80, technically speaking.
Don't think there would be that much there though given what seems to be going on.
I think shorts would be looking for a close around 40.50.
While I'm awaiting the breakout, I predict AMED will end next week at 40. The open interest on the Dec 40 calls is 2715, while the OI on the 45 calls is 5778. On the other hand, the OI on the 40 puts is 2813 while the OI on the 45 puts is only 805.
That means that the option MMs save a themselves a lot of money if they can get it to close next week right at $40, causing the maximum number of options to expire worthless.
Think about those OI numbers as compared to AMED's daily volume. It's well worth it for the options MMs to throw some money into keeping the stock tamped down.
Well, I was wrong. Instead of the stock closing the week right at $40, it's going to be right at $45.
The OI on the Dec. $45 puts ballooned to almost 2,000 after I wrote my note, which I guess made $45 the price that cost the option writers the least overall.
Next week we can take a break from manipulation.
you make a very good point about maximum pain. on the other hand people might just feel that below 42 or 41 it is just too good of a deal. and with 5 dollar increments 42 or so might still inflict enough pain to the herd.
one thing is sure: the stock the past two days has shown a bearish behavior, strong in the early hours and weakening towards the close. probably a traders' stock at this point. no real conviction into buying.
I hope we see better than my prediction but i doubt it.
yes, this looks to be a problem for shorts. Stock trading like its poised for a pretty significant rally. Today's buyers are quite a bit more aggressive than those of the past few weeks.
All based on technical analysis, which obviously carries plenty of limitations.