today. This 'house of cards' will begin it's tumble next week after a triple top. Max pain has been raised to between $135-$140 for Feb 16 but that is still a long ways down from here. If there were any more shorts who were holding against all odds, this would have seen a new high today. Obviously, that is done and over with. Might be pinned to $170 for the weekly expiry and then down she goes next week. The craziness has lasted a whole week, not counting the 45% gap up last Thu. The run to $145 was even slightly justified with all the hype and short covering (the old shorts) but the additional $25 from there is all hot air (daytrading new shorts) and can't be sustained past this week. Today, you have the markets roaring, options expiry, an analyst upgrade and the much anticipated show released. The "Last Hurrah" IMO...
The next release will be "Hemlock Grove" overseen by Eli Roth who will direct the first couple of episodes. A horror show with Twin Peakish overtones. It's bound to be a crowd pleaser. Roth has promised "Story before Gory".
It will premiere in April, and contribute additional subscriber growth in the second quarter.
I don't make up the rules. Go look at the option pain website. I can't post a link with this new format. Just google it. The max number of puts and calls will expire worthless between $135 and $140 if you look at the bar chart. The market makers will do what it takes to get it there (or lower so that they can bounce it back up to $140). With no more positive news in the near horizon and no more shorts to cover, they can easily pull the rug from underneath on low volume (like they tested for a few days this week) and a panic sell will ensue. It bounced back because of short covering and the weekly max pain (expiring today) being between $165-170, thanks to the shorts who were annihilated all week. Also, they could announce a secondary as early as next week, before it drops back to $135 and set the price around $135, so that lemmings will buy the 'discount'. Yes, I did expect it to hang around here all week due to the factors explained above, and I expect it to drop significantly next week due to the factors explained above.