Same old same old... Dribs and drabs of bids trying to bring the price down. Near the lows of the day and stalled... Hopefully she will pop after East Coast lunch time. Yesterday she stalled out at about the same time.
I'm speaking out of experience playing with stocks that have had > 40% SI (SODA, TZOO, FSLR etc) They struggle to go up and meet resistance at every level, but go down fast and hard. Fundamentals, technicals etc... Nothing seem to matter.
I agree something have to give in, but all the positive news and earnings beat have no positive impact on the PPS. Even if your cost basis is @ 13.5... You can see you gains wiped out in a session or 2. It is like the whole world is waiting for the squeeze and that's exactly why it is not happening. If this cannot move up significantly higher with the market then what is the catalyst?
If SKUL misses on the next earnings then I think that it will be knocked down at least 30%, if not more.
I am guessing it would be really difficult to find shares to borrow
short and that's what's barring someone from opening such a position?
BTW YELP options price were similarly lop-sided prior to shorts getting
squeezed yesterday. The Oct and farther out options are still trading
lop-sided today. For YELP, the catalyst was lack of insider selling
after lock-up expiration. SKUL needs some catalyst also, just not sure
what and when...
Anyone on the MB help me iut here?
I'm not an option expert (never have dabbled in them)...
My question is WHEN did this unusual option pricing in SKUL start? Question two is WHEN will these options expire (Puts in question?) and what would the impact be on the stock volume (and price)
Just asking how this scenario could play out...
I think the short sellers are now stuck overbidding the puts because they can't find more stock to short. I thought about the arbitrage opportunity, but decided in favor of just loading up on the synthetic stock position. This is a short squeeze just waiting to happen.
My point is this stock looks like an attractive Buy @12 when it is at 15.5, but when it gets down to that level (Maybe the the whole market is selling off) and you might not want to commit that capital anymore.
But, if you really want to get long the stock (No matter what) at lower levels then Selling that PUT is a good strategy (Don't sell more than you can afford/want to Buy stock)
As frustrating as the action the last two days have been this stock is still in an uptrend both off the golden cross and off the 3 higher lows it has put in on the dailys - it just needs some real news - and no sorry gents good looking pics of supermodels is not real news -
That being said this action today on the market in general looks like a bear trap - suck some bears in and squeeze them all next week with smooth words from bernake - i have some contrarian friends who got short this AM and you can see the VIX bouncing off its upper BB pretty hard this AM -
Not saying we are going to 1500 on the S+P but certainly think there is one more squeeze left here for people who jumped the gun today -
Just my opinion -
I'm pretty bearish on the general market and the world economic outlook. But, I can't stand in the way of FED, ECB and China if they are willing to stimulate the cr@p out of the markets. Someday, this bubble will burst and it will be worse than 2008, but until then follow the trend (Esp. after S&P breached the 4 year highs last week)
I agree that there will be one more frenzy run before the market tops out for the good!
Problem with this stock is there isn't any daily news. Every week or so someone comes out with an article about the squeeze and the stock just keeps meandering along. Everywhere I look I see Jim Cramers "Don't buy" garbage listed next to positive reports on the stock. (The media has it's following sheep I guess).