I've won big on two binary biotechs (ARNA and ACAD) and lost once (CPRX).....one question I've always wondered.....how does a stock "jump" or "tank" instantaneously. So if the results are good CLSN will open at $16 tomorrow and if they're bad it'll open at $2.....How does that happen from a mechanics perspective? The stock is $8.02....wouldn't it have to get bought up to $16 or sold down to $2 over some period of time (even if only a few minutes).....How does it instantly jump or tank in a nanosecond?
I've always wondered this even though I've profited from a few of these jumps in the past and hope to do so tomorrow.....I'm in on about 1,600 shares...
Very interesting.....so the opening price is not based on any actual purchases or sales? Is it opinion based? And are the market makers the hedge funds or the money managers for the big firms like Fidelity, etc.?
Any more input would be appreciated.......Just very intrigured by this