Up 279% today after earnings, having pre announced results a few weeks back when the company announced a restructuring, cost cutting, and the CEO stepping down. Earnings were in line with the pre announce. I think it was a short squeeze today. In essence, the company isn’t substantially different today than it was before earnings were announced. I think that this presents a good opportunity for those who want to short.
Price at close today - $8.63
Down 50%. It’s still got a ways to go to get back to where it was, I think you can ride this back down to ~$3.00 or lower.
Do you short outright or use options?
I don’t at all. That said, I think generally when there are big movements like this that are not fundamentally based, then shorting shares is probably safer, due to potential for volatility. If it’s possible to buy some puts though, those may be interesting, but I don’t know much of anything about how options trading actually goes on in the real world.
0/10, do not recommend. Theta crushes me every time I buy options because I have a short attention span. I gave up on them. Or on myself, depending on how you look at it.
Well this is dropping pretty fast. Down 59% so far. Still a ways to go.
So the short trade would’ve netted 67% at this point. I think this trade has been shown to be successful but ultimately I think it can be ridden back down to where the stock price was before earnings, so ~$2.00, and eventually more, but ~$2-$2.30 is probably a good place to exit.