Hedge funds can move this wherever they choose. Put buyers may see them expire worthless. Hard to tell, as this decline is on high volume. Over half the usual volume in just over an hour of trading. I suggest shorts be very careful, and if you must play, don't bet the farm.
Every mini rally has been met with a selloff for some time now. This will be no different I'm sorry to say.
Hope you make a bundle on your calls. I bought some Sep $7.50 calls last week for .20 and almost sold them today for .45, but not a big enough position to matter, so am holding my shares and my breath.
To be fair, the "idiot" longs are the ones that made great money here. Only a few shorts have been lucky enough to be profitable. Most longs here got in under $100, so can hardly be called idiots. There may be a pullback here, but even so they will have very nice profits. Most shorts didn't think the stock would go through $100, myself included. Nothing wrong with playing either side of the market IMO, but let's be fair and honest about it.
If DNDN becomes a penny stock before then you lose a lot of $$$. And then there is the emotional cost of worrying for another 16 months or so. I hope it works for you but it is a significant risk.
tara--There are plenty of shorts who don't comment. I have been short at times and have posted comments indicating that longs were right, and even suggesting shorts shouldn't distort the facts. The hateful, mean spirited shorts are just the ones that we all notice. Possibly some of the very unhappy and angry people project their feelings onto the market, believing nothing can work out well and then post that same sentiment.
You bought nearly $1,000,000 worth of stock and are asking the message board why the stock is up? I don't think so. If you were smart enough to have accumulated that much money, you would take profits and wait for the next dip.
Not true. Most longs are in about the same place as they were yesterday. Few went out on a limb and bought on that dip. But it is a nice gain for the day and seems likely to hold. FWIW, I think these stories about the value of the stock being much lower are trotted out by hedge funds to induce put buying. After enough money has been committed to buying puts, they simply push the stock back up to capture the value of the puts they sold. Basically, I believe they are using certain stocks like TSLA as their personal piggy bank to make money by controlling the price. If I am right, this is and has been great for longs.
catcher--When a batter would strike out, did you jump up and laugh at him and tell him how terrible he was? I'm guessing not. Probably for several reasons, including "bad karma" perhaps. Same holds true here. The move yesterday was the stock pointing to the fences telling you where it is going. It will correct. Could be today, tomorrow, or next week, but it will happen.
Usually they last 2-3 days if event driven. If we see a lower price again tomorrow, followed by sideways movement, we are preparing to bounce higher. Today could even be the end of it. I nibbled here and will add tomorrow if we go lower and then stabilize. If freefalling tomorrow, which is very unlikely, step aside and wait a bit.
Have to love this bounce. Shorts had better cover. Staying short is risky.
One of the more popular strategies is to lose money through puts. Most of us realize that parabolic moves correct, and so buying puts looks like an easy way to make money. But the same logic would have suggested that at $100, $110, etc. Nothing really different here. Clearly retail investors aren't keeping such a pricey stock afloat. So this means mutual funds and/or hedge funds are supporting it. Personally, I think hedge funds move it around at will, and use it to make money from short positions. Today's close was a great example. A couple times it appeared it might begin to sell off more and then mysteriously the bid/ask would start moving higher. It would not surprise me at all if Cramer and others who make negative comments about the stock have been enlisted to help draw in more shorts. Cramer is smart enough to see what is taking place. Definitely not a smart short at the present time IMO. On the other hand, if you're long, it is nice to have the protection of the big boys.
Hedge funds are making big bucks repeatedly selling puts and then holding the price steady so the value of the puts goes to zero. They will do it over and over until at some point they decide to be the buyers of puts, and then they will let the stock fall, as it would naturally without their protection. In the meantime, shorts should NOT buy and short dated puts, as this is just a contribution to some hedge fund(s) that can move the price at will. Longs should take advantage of this and sell at least some calls against some part of their stock, as it likely goes sideways for awhile. You can sell the Sep $165 calls expiring in 8 days for $5, and odds are very good it closes near there next week.
They periodically let the stock dip a buck or two to keep volatility in the option premiums and draw in new shorts, but obviously this stock, as well as many others in the market, do not trade on normal supply/demand characteristics.