I've been warning of the put/call premium bubble pre-earnings for a long time. Now a new crop of suckers is learning. Even the strikes near $600 are down sharply.
Take short profits if you have them.
Ol' Syb hatez everyone equally, with a bit more for Phil maybe. Nothing personal. Syb may be wrong about one thing. There may be a strong rally going into election where the Repubs recapture the Senate & increase House majority that may carry some stocks to new highs, and even the SP500 back above 2000 by January. However, I give this a 40% chance. Syb may be 60% correct that the Alibaba top was THE top.
Massive collapse of premiums on Tuesday.
Put spreads if bearish or call spreads if bullish. I lean to the bear side on this one. It will take a $50 plus move to break even on this--so buy a spread if you play at all. The premiums will be deflating bigtime Tuesday.
They were counting on higher rates & they may not materialize. Forcast: "PAIN!" to quote the esteemed Mr. T.
Since usually bearish Alan Abelson passed on, Barrons has become a pumper paper. They are changing their name to "Bullons". The paper is no longer worth reading except for a good laugh.
All the high PE momentum stocks are linked in high correlation.
All the high PE Momentum stocks move as a herd generally.
Sentiment: Strong Sell
Will AMZN, CMG etc. all follow the pied piper down? Seems possible.
Nice! Me too. All the "canslims" and "candies" and pigz open down 10% & more...CMG, AMZN, all in sympathy.
Cramer said use any rallies, if they occur, to get out or at least lighten up in most stocks. MOMOs will be hit very hard, as will travel, leisure, hotel & airlines according to Cramer who cited ebola fears & other issues.