Xiozinc的个人主页 - 老虎社区

Xiozinc

Xiozinc

暂无个人介绍

IP属地：未知

16关注

0粉丝

0主题

0勋章

2021-04-15

$SINGAPORE AIRLINES LTD(C6L.SI)$buy buy buy!!

2021-04-15

$SINGAPORE AIRLINES LTD(C6L.SI)$buy more 👍👍

2021-03-22

$RLX Technology(RLX)$"be fearful when people are greedy, and be greedy when people are fearful" - my billionaire homie. Its an overreaction from the public, get on this now!!!!

2021-03-15

$SINGAPORE AIRLINES LTD(C6L.SI)$lets gooo

2021-03-03

$NIO Inc.(NIO)$hold to the moon🚀🚀🚀

2021-03-01

🚀🚀🚀

Gamestop And High Volatility Options

2021-02-26

Moon mode!!! 🚀🚀

Gamestop And High Volatility Options

2021-02-26

Round 2 baby to the moon!! Break 190 resistance today!?!

2021-02-19

$Sundial Growers Inc.(SNDL)$Guh. Lucky to have closed most on peak

2021-02-18

Blant Pump and Dump. Like anyone would fall for it. Come on.

2021-02-18

$Palantir Technologies Inc.(PLTR)$Its never a loss if I don't close the deal.

2021-02-17

Buy the dip duh.

抱歉，原内容已删除

2021-02-17

Should totally buy at 4.50

2021-02-17

$Palantir Technologies Inc.(PLTR)$solid la, go up thanks

2021-02-16

No

The Great SPAC Debate: Are They In A Bubble?

2021-02-16

$Apple(AAPL)$haiz

2021-02-16

Aapl 400by 2022 let's go

去老虎APP查看更多动态

{"i18n":{"language":"zh_CN"},"userPageInfo":{"id":"3575021854974950","uuid":"3575021854974950","gmtCreate":1612152161485,"gmtModify":1613614255552,"name":"Xiozinc","pinyin":"xiozinc","introduction":"","introductionEn":"","signature":"","avatar":"https://static.tigerbbs.com/ed7e0a12b6d1563dcfbdccfcae177723","hat":null,"hatId":null,"hatName":null,"vip":1,"status":2,"fanSize":0,"headSize":16,"tweetSize":17,"questionSize":0,"limitLevel":999,"accountStatus":4,"level":{"id":3,"name":"书生虎","nameTw":"書生虎","represent":"努力向上","factor":"发布10条非转发主帖,其中5条获得他人回复或点赞","iconColor":"3C9E83","bgColor":"A2F1D9"},"themeCounts":0,"badgeCounts":0,"badges":[],"moderator":false,"superModerator":false,"manageSymbols":null,"badgeLevel":null,"boolIsFan":false,"boolIsHead":false,"favoriteSize":0,"symbols":null,"coverImage":null,"realNameVerified":null,"userBadges":[{"badgeId":"e50ce593bb40487ebfb542ca54f6a561-1","templateUuid":"e50ce593bb40487ebfb542ca54f6a561","name":"出道虎友","description":"加入老虎社区500天","bigImgUrl":"https://static.tigerbbs.com/0e4d0ca1da0456dc7894c946d44bf9ab","smallImgUrl":"https://static.tigerbbs.com/0f2f65e8ce4cfaae8db2bea9b127f58b","grayImgUrl":"https://static.tigerbbs.com/c5948a31b6edf154422335b265235809","redirectLinkEnabled":0,"redirectLink":null,"hasAllocated":1,"isWearing":0,"stamp":null,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2022.06.23","exceedPercentage":null,"individualDisplayEnabled":0,"backgroundColor":null,"fontColor":null,"individualDisplaySort":0,"categoryType":1001},{"badgeId":"976c19eed35f4cd78f17501c2e99ef37-1","templateUuid":"976c19eed35f4cd78f17501c2e99ef37","name":"博闻投资者","description":"累计交易超过10只正股","bigImgUrl":"https://static.tigerbbs.com/e74cc24115c4fbae6154ec1b1041bf47","smallImgUrl":"https://static.tigerbbs.com/d48265cbfd97c57f9048db29f22227b0","grayImgUrl":"https://static.tigerbbs.com/76c6d6898b073c77e1c537ebe9ac1c57","redirectLinkEnabled":0,"redirectLink":null,"hasAllocated":1,"isWearing":0,"stamp":null,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2021.12.21","exceedPercentage":null,"individualDisplayEnabled":0,"backgroundColor":null,"fontColor":null,"individualDisplaySort":0,"categoryType":1102},{"badgeId":"518b5610c3e8410da5cfad115e4b0f5a-1","templateUuid":"518b5610c3e8410da5cfad115e4b0f5a","name":"实盘交易者","description":"完成一笔实盘交易","bigImgUrl":"https://static.tigerbbs.com/2e08a1cc2087a1de93402c2c290fa65b","smallImgUrl":"https://static.tigerbbs.com/4504a6397ce1137932d56e5f4ce27166","grayImgUrl":"https://static.tigerbbs.com/4b22c79415b4cd6e3d8ebc4a0fa32604","redirectLinkEnabled":0,"redirectLink":null,"hasAllocated":1,"isWearing":0,"stamp":null,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2021.12.21","exceedPercentage":null,"individualDisplayEnabled":0,"backgroundColor":null,"fontColor":null,"individualDisplaySort":0,"categoryType":1100},{"badgeId":"35ec162348d5460f88c959321e554969-1","templateUuid":"35ec162348d5460f88c959321e554969","name":"精英交易员","description":"证券或期货账户累计交易次数达到30次","bigImgUrl":"https://static.tigerbbs.com/ab0f87127c854ce3191a752d57b46edc","smallImgUrl":"https://static.tigerbbs.com/c9835ce48b8c8743566d344ac7a7ba8c","grayImgUrl":"https://static.tigerbbs.com/76754b53ce7a90019f132c1d2fbc698f","redirectLinkEnabled":0,"redirectLink":null,"hasAllocated":1,"isWearing":0,"stamp":null,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2021.12.21","exceedPercentage":"60.53%","individualDisplayEnabled":0,"backgroundColor":null,"fontColor":null,"individualDisplaySort":0,"categoryType":1100}],"userBadgeCount":4,"currentWearingBadge":null,"individualDisplayBadges":null,"crmLevel":2,"crmLevelSwitch":0,"location":"未知","starInvestorFollowerNum":0,"starInvestorFlag":false,"starInvestorOrderShareNum":0,"subscribeStarInvestorNum":0,"ror":null,"winRationPercentage":null,"showRor":false,"investmentPhilosophy":null,"starInvestorSubscribeFlag":false},"baikeInfo":{},"tab":"post","tweets":[{"id":347152488,"gmtCreate":1618477696044,"gmtModify":1631885600986,"author":{"id":"3575021854974950","authorId":"3575021854974950","name":"Xiozinc","avatar":"https://static.tigerbbs.com/ed7e0a12b6d1563dcfbdccfcae177723","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3575021854974950","authorIdStr":"3575021854974950"},"themes":[],"htmlText":"<a href=\"https://laohu8.com/S/C6L.SI\">$SINGAPORE AIRLINES LTD(C6L.SI)$</a>buy buy buy!!","listText":"<a href=\"https://laohu8.com/S/C6L.SI\">$SINGAPORE AIRLINES LTD(C6L.SI)$</a>buy buy buy!!","text":"$SINGAPORE AIRLINES LTD(C6L.SI)$buy buy buy!!","images":[{"img":"https://static.tigerbbs.com/a9c45ea38f22466aa9e026eee4f18ecf","width":"1080","height":"1920"}],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":1,"repostSize":1,"link":"https://laohu8.com/post/347152488","isVote":1,"tweetType":1,"viewCount":2036,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":1,"langContent":"EN","totalScore":0},{"id":347152883,"gmtCreate":1618477658242,"gmtModify":1631885600975,"author":{"id":"3575021854974950","authorId":"3575021854974950","name":"Xiozinc","avatar":"https://static.tigerbbs.com/ed7e0a12b6d1563dcfbdccfcae177723","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3575021854974950","authorIdStr":"3575021854974950"},"themes":[],"htmlText":"<a href=\"https://laohu8.com/S/C6L.SI\">$SINGAPORE AIRLINES LTD(C6L.SI)$</a>buy more 👍👍","listText":"<a href=\"https://laohu8.com/S/C6L.SI\">$SINGAPORE AIRLINES LTD(C6L.SI)$</a>buy more 👍👍","text":"$SINGAPORE AIRLINES LTD(C6L.SI)$buy more 👍👍","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/347152883","isVote":1,"tweetType":1,"viewCount":1188,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":359766883,"gmtCreate":1616424588642,"gmtModify":1634525880978,"author":{"id":"3575021854974950","authorId":"3575021854974950","name":"Xiozinc","avatar":"https://static.tigerbbs.com/ed7e0a12b6d1563dcfbdccfcae177723","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3575021854974950","authorIdStr":"3575021854974950"},"themes":[],"htmlText":"<a href=\"https://laohu8.com/S/RLX\">$RLX Technology(RLX)$</a>\"be fearful when people are greedy, and be greedy when people are fearful\" - my billionaire homie. Its an overreaction from the public, get on this now!!!!","listText":"<a href=\"https://laohu8.com/S/RLX\">$RLX Technology(RLX)$</a>\"be fearful when people are greedy, and be greedy when people are fearful\" - my billionaire homie. Its an overreaction from the public, get on this now!!!!","text":"$RLX Technology(RLX)$\"be fearful when people are greedy, and be greedy when people are fearful\" - my billionaire homie. Its an overreaction from the public, get on this now!!!!","images":[{"img":"https://static.tigerbbs.com/d48dff5d7c44a45d28191f59e99479bb","width":"1080","height":"1920"}],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":2,"repostSize":0,"link":"https://laohu8.com/post/359766883","isVote":1,"tweetType":1,"viewCount":2524,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":1,"langContent":"EN","totalScore":0},{"id":322188841,"gmtCreate":1615783159183,"gmtModify":1703492885910,"author":{"id":"3575021854974950","authorId":"3575021854974950","name":"Xiozinc","avatar":"https://static.tigerbbs.com/ed7e0a12b6d1563dcfbdccfcae177723","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3575021854974950","authorIdStr":"3575021854974950"},"themes":[],"htmlText":"<a href=\"https://laohu8.com/S/C6L.SI\">$SINGAPORE AIRLINES LTD(C6L.SI)$</a>lets&nbsp; gooo","listText":"<a href=\"https://laohu8.com/S/C6L.SI\">$SINGAPORE AIRLINES LTD(C6L.SI)$</a>lets&nbsp; gooo","text":"$SINGAPORE AIRLINES LTD(C6L.SI)$lets gooo","images":[{"img":"https://static.tigerbbs.com/4cfb736486318b7abf2f3df3e3fa37d6","width":"1080","height":"1920"}],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/322188841","isVote":1,"tweetType":1,"viewCount":1170,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":1,"langContent":"EN","totalScore":0},{"id":365405808,"gmtCreate":1614766793804,"gmtModify":1703480827491,"author":{"id":"3575021854974950","authorId":"3575021854974950","name":"Xiozinc","avatar":"https://static.tigerbbs.com/ed7e0a12b6d1563dcfbdccfcae177723","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3575021854974950","authorIdStr":"3575021854974950"},"themes":[],"htmlText":"<a href=\"https://laohu8.com/S/NIO\">$NIO Inc.(NIO)$</a>hold to the moon🚀🚀🚀","listText":"<a href=\"https://laohu8.com/S/NIO\">$NIO Inc.(NIO)$</a>hold to the moon🚀🚀🚀","text":"$NIO Inc.(NIO)$hold to the moon🚀🚀🚀","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/365405808","isVote":1,"tweetType":1,"viewCount":956,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":362033953,"gmtCreate":1614571492472,"gmtModify":1703478327923,"author":{"id":"3575021854974950","authorId":"3575021854974950","name":"Xiozinc","avatar":"https://static.tigerbbs.com/ed7e0a12b6d1563dcfbdccfcae177723","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3575021854974950","authorIdStr":"3575021854974950"},"themes":[],"htmlText":"🚀🚀🚀","listText":"🚀🚀🚀","text":"🚀🚀🚀","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/362033953","repostId":"1146313632","repostType":4,"repost":{"id":"1146313632","kind":"news","pubTimestamp":1614334339,"share":"https://www.laohu8.com/m/news/1146313632?lang=&edition=full","pubTime":"2021-02-26 18:12","market":"us","language":"en","title":"Gamestop And High Volatility Options","url":"https://stock-news.laohu8.com/highlight/detail?id=1146313632","media":"Options AI: Learn","summary":"Gamestop Corp. shares have soared the past few days with the stock up nearly 200% at one point from ","content":"<p><b>Gamestop Corp.</b>&nbsp;shares have soared the past few days with the stock up nearly 200% at one point from last week (but still down significantly from recent short squeeze highs). We'll look at the unique situations that arise in the options of a highly volatile stock like Gamestop and a few things that might be considered before trading options.</p><hr><p><b>Gamestop: The Expected Move</b></p><p>First, a look at how options are pricing upcoming moves. Here's theOptions AIexpected move chart for Gamestop, with a nearly 30% move being priced into this Friday's close. And a roughly 80% move being priced for the next month. A month that includes an earnings event (unconfirmed):</p><p><img src=\"https://static.tigerbbs.com/e35872724d8db887fa09d822d622ac8c\" tg-width=\"568\" tg-height=\"817\" referrerpolicy=\"no-referrer\"></p><p>Gamestop: Call Spreads vs Outright Calls</p><p>Using March 19th as an expiry we first looks at bullish spreads, and compare directly to outright calls. With a stock as volatile as Gamestop, calls can be expensive. Because of that, many traders resort to buying far out of the money calls. That demand for upside calls increases volatility in those calls, making them expensive relative to at-the-money calls – a phenomenon known as skew. However, for those that are bullish, this may create an opportunity to utilize spreads rather than buying an outright call. Let's see how.</p><p>Here we'll focus on one alternative – using debit spreads to lower the overall cost of a directional trade (while potentially improving the probability of profit of the trade itself by lowering the breakeven level). It does so by selling those relatively expensive out-the-money Calls to help finance the purchase of a nearer to at-the-money Call.</p><p>With Gamestop near $105, the&nbsp;<b>March 19th 110/190 Debit Call Spread</b>&nbsp;is roughly $15 and targets the bullish expected move for March 19th. The debit call spread would need the stock to be above $125 on March 19th to be profitable.</p><p>As a comparison, the GME March 19th 200 calls are trading $29. That's nearly twice the cost for a 200 call that needs the stock above $229 by March 19th… versus a call spread, that needs the stock above $125. Here's a side by side comparison of those two trades on the Options AI chart. First, the 200 call:</p><p><img src=\"https://static.tigerbbs.com/b044a22bfbe5a8326f9aa3ebf56ed4fd\" tg-width=\"570\" tg-height=\"740\" referrerpolicy=\"no-referrer\"></p><p>And next, the 145/200 debit call spread:</p><p><img src=\"https://static.tigerbbs.com/6cdf8545f07da48f770ef81cb4e5ac53\" tg-width=\"569\" tg-height=\"792\" referrerpolicy=\"no-referrer\"></p><p>As you can see, not only is the call spread less expensive, the point at which is becomes profitable to the upside is much closer to where the stock is currently trading. (As indicated by the grey price of the breakeven.)</p><p>A note on probability of profit. The probability of profit displayed on these trades is based on the delta being assigned to the breakeven of the trade. The fact that a 200 call in a $105 stock is trading near 50 deltas shows just how distorting an effect Gamestop volatility is having on its options (hard to borrow, skew, retail demand for out-of-the-money calls).</p><p>Directional Butterflies vs Outright Puts</p><p>High volatility also affects bearish options trades. One of the counter-intuitive aspects of a high volatility stock like Gamestop is that its implied volatility can go up as the stock goes higher and down as the stock goes lower. This is the opposite of how we generally think about volatility. Therefore, buying outright puts carries a risk of collapsing volatility (and therefore collapsing premiums) as the stock goes lower. So, even though the stock is moving in the intended direction, as an option holder you may not be realizing the gains expected.</p><p>One way to counter high implied volatility in a stock, especially when having a bearish view, is to be a net seller of option premium. To sell to bullish option traders rather than join bearish option traders. Traditionally that might take the form of selling a Credit Call Spread. But in GME's case that means buying the (expensive) upper strike Call at a higher volatility than the Call that is closer to the money (as described above).</p><p>So, one option strategy that can be considered by traders is using a Butterfly. An option trade that is more typically associated with a neutral trading view, but here adapted to actually create a targeted (bearish) directional view.</p><p>Here, as an example, is a Butterfly with its center strikes focused at $80 in the stock, with a March 19th expiry:</p><p><img src=\"https://static.tigerbbs.com/f7cb8f9b0570e854f662f3031e50ca91\" tg-width=\"573\" tg-height=\"740\" referrerpolicy=\"no-referrer\"></p><p>This 130/80/30 butterfly has breakevens of 115 and 45, meaning the trade is profitable if the stock is between those two prices at March 19th expiry… with a max gain occurring if the stock is at or near $80. It has the additional dynamic of being short premium, and if the stock stays within its range would see mark to market gains if implied volatility compressed.</p>","source":"lsy1614334070724","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Gamestop And High Volatility Options</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nGamestop And High Volatility Options\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-02-26 18:12 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://learn.optionsai.com/gamestop-and-high-volatility-options/><strong>Options AI: Learn</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Gamestop Corp. shares have soared the past few days with the stock up nearly 200% at one point from last week (but still down significantly from recent short squeeze highs). We'll look at the unique ...</p>\n\n<a href=\"https://learn.optionsai.com/gamestop-and-high-volatility-options/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"GME":"游戏驿站"},"source_url":"https://learn.optionsai.com/gamestop-and-high-volatility-options/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1146313632","content_text":"Gamestop Corp. shares have soared the past few days with the stock up nearly 200% at one point from last week (but still down significantly from recent short squeeze highs). We'll look at the unique situations that arise in the options of a highly volatile stock like Gamestop and a few things that might be considered before trading options.Gamestop: The Expected MoveFirst, a look at how options are pricing upcoming moves. Here's theOptions AIexpected move chart for Gamestop, with a nearly 30% move being priced into this Friday's close. And a roughly 80% move being priced for the next month. A month that includes an earnings event (unconfirmed):Gamestop: Call Spreads vs Outright CallsUsing March 19th as an expiry we first looks at bullish spreads, and compare directly to outright calls. With a stock as volatile as Gamestop, calls can be expensive. Because of that, many traders resort to buying far out of the money calls. That demand for upside calls increases volatility in those calls, making them expensive relative to at-the-money calls – a phenomenon known as skew. However, for those that are bullish, this may create an opportunity to utilize spreads rather than buying an outright call. Let's see how.Here we'll focus on one alternative – using debit spreads to lower the overall cost of a directional trade (while potentially improving the probability of profit of the trade itself by lowering the breakeven level). It does so by selling those relatively expensive out-the-money Calls to help finance the purchase of a nearer to at-the-money Call.With Gamestop near $105, the March 19th 110/190 Debit Call Spread is roughly $15 and targets the bullish expected move for March 19th. The debit call spread would need the stock to be above $125 on March 19th to be profitable.As a comparison, the GME March 19th 200 calls are trading $29. That's nearly twice the cost for a 200 call that needs the stock above $229 by March 19th… versus a call spread, that needs the stock above $125. Here's a side by side comparison of those two trades on the Options AI chart. First, the 200 call:And next, the 145/200 debit call spread:As you can see, not only is the call spread less expensive, the point at which is becomes profitable to the upside is much closer to where the stock is currently trading. (As indicated by the grey price of the breakeven.)A note on probability of profit. The probability of profit displayed on these trades is based on the delta being assigned to the breakeven of the trade. The fact that a 200 call in a $105 stock is trading near 50 deltas shows just how distorting an effect Gamestop volatility is having on its options (hard to borrow, skew, retail demand for out-of-the-money calls).Directional Butterflies vs Outright PutsHigh volatility also affects bearish options trades. One of the counter-intuitive aspects of a high volatility stock like Gamestop is that its implied volatility can go up as the stock goes higher and down as the stock goes lower. This is the opposite of how we generally think about volatility. Therefore, buying outright puts carries a risk of collapsing volatility (and therefore collapsing premiums) as the stock goes lower. So, even though the stock is moving in the intended direction, as an option holder you may not be realizing the gains expected.One way to counter high implied volatility in a stock, especially when having a bearish view, is to be a net seller of option premium. To sell to bullish option traders rather than join bearish option traders. Traditionally that might take the form of selling a Credit Call Spread. But in GME's case that means buying the (expensive) upper strike Call at a higher volatility than the Call that is closer to the money (as described above).So, one option strategy that can be considered by traders is using a Butterfly. An option trade that is more typically associated with a neutral trading view, but here adapted to actually create a targeted (bearish) directional view.Here, as an example, is a Butterfly with its center strikes focused at $80 in the stock, with a March 19th expiry:This 130/80/30 butterfly has breakevens of 115 and 45, meaning the trade is profitable if the stock is between those two prices at March 19th expiry… with a max gain occurring if the stock is at or near $80. It has the additional dynamic of being short premium, and if the stock stays within its range would see mark to market gains if implied volatility compressed.","news_type":1,"symbols_score_info":{"GME":0.9}},"isVote":1,"tweetType":1,"viewCount":932,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":368445599,"gmtCreate":1614350667811,"gmtModify":1703476767610,"author":{"id":"3575021854974950","authorId":"3575021854974950","name":"Xiozinc","avatar":"https://static.tigerbbs.com/ed7e0a12b6d1563dcfbdccfcae177723","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3575021854974950","authorIdStr":"3575021854974950"},"themes":[],"htmlText":"Moon mode!!!&nbsp;🚀🚀","listText":"Moon mode!!!&nbsp;🚀🚀","text":"Moon mode!!! 🚀🚀","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/368445599","repostId":"1146313632","repostType":4,"repost":{"id":"1146313632","kind":"news","pubTimestamp":1614334339,"share":"https://www.laohu8.com/m/news/1146313632?lang=&edition=full","pubTime":"2021-02-26 18:12","market":"us","language":"en","title":"Gamestop And High Volatility Options","url":"https://stock-news.laohu8.com/highlight/detail?id=1146313632","media":"Options AI: Learn","summary":"Gamestop Corp. shares have soared the past few days with the stock up nearly 200% at one point from ","content":"<p><b>Gamestop Corp.</b>&nbsp;shares have soared the past few days with the stock up nearly 200% at one point from last week (but still down significantly from recent short squeeze highs). We'll look at the unique situations that arise in the options of a highly volatile stock like Gamestop and a few things that might be considered before trading options.</p><hr><p><b>Gamestop: The Expected Move</b></p><p>First, a look at how options are pricing upcoming moves. Here's theOptions AIexpected move chart for Gamestop, with a nearly 30% move being priced into this Friday's close. And a roughly 80% move being priced for the next month. A month that includes an earnings event (unconfirmed):</p><p><img src=\"https://static.tigerbbs.com/e35872724d8db887fa09d822d622ac8c\" tg-width=\"568\" tg-height=\"817\" referrerpolicy=\"no-referrer\"></p><p>Gamestop: Call Spreads vs Outright Calls</p><p>Using March 19th as an expiry we first looks at bullish spreads, and compare directly to outright calls. With a stock as volatile as Gamestop, calls can be expensive. Because of that, many traders resort to buying far out of the money calls. That demand for upside calls increases volatility in those calls, making them expensive relative to at-the-money calls – a phenomenon known as skew. However, for those that are bullish, this may create an opportunity to utilize spreads rather than buying an outright call. Let's see how.</p><p>Here we'll focus on one alternative – using debit spreads to lower the overall cost of a directional trade (while potentially improving the probability of profit of the trade itself by lowering the breakeven level). It does so by selling those relatively expensive out-the-money Calls to help finance the purchase of a nearer to at-the-money Call.</p><p>With Gamestop near $105, the&nbsp;<b>March 19th 110/190 Debit Call Spread</b>&nbsp;is roughly $15 and targets the bullish expected move for March 19th. The debit call spread would need the stock to be above $125 on March 19th to be profitable.</p><p>As a comparison, the GME March 19th 200 calls are trading $29. That's nearly twice the cost for a 200 call that needs the stock above $229 by March 19th… versus a call spread, that needs the stock above $125. Here's a side by side comparison of those two trades on the Options AI chart. First, the 200 call:</p><p><img src=\"https://static.tigerbbs.com/b044a22bfbe5a8326f9aa3ebf56ed4fd\" tg-width=\"570\" tg-height=\"740\" referrerpolicy=\"no-referrer\"></p><p>And next, the 145/200 debit call spread:</p><p><img src=\"https://static.tigerbbs.com/6cdf8545f07da48f770ef81cb4e5ac53\" tg-width=\"569\" tg-height=\"792\" referrerpolicy=\"no-referrer\"></p><p>As you can see, not only is the call spread less expensive, the point at which is becomes profitable to the upside is much closer to where the stock is currently trading. (As indicated by the grey price of the breakeven.)</p><p>A note on probability of profit. The probability of profit displayed on these trades is based on the delta being assigned to the breakeven of the trade. The fact that a 200 call in a $105 stock is trading near 50 deltas shows just how distorting an effect Gamestop volatility is having on its options (hard to borrow, skew, retail demand for out-of-the-money calls).</p><p>Directional Butterflies vs Outright Puts</p><p>High volatility also affects bearish options trades. One of the counter-intuitive aspects of a high volatility stock like Gamestop is that its implied volatility can go up as the stock goes higher and down as the stock goes lower. This is the opposite of how we generally think about volatility. Therefore, buying outright puts carries a risk of collapsing volatility (and therefore collapsing premiums) as the stock goes lower. So, even though the stock is moving in the intended direction, as an option holder you may not be realizing the gains expected.</p><p>One way to counter high implied volatility in a stock, especially when having a bearish view, is to be a net seller of option premium. To sell to bullish option traders rather than join bearish option traders. Traditionally that might take the form of selling a Credit Call Spread. But in GME's case that means buying the (expensive) upper strike Call at a higher volatility than the Call that is closer to the money (as described above).</p><p>So, one option strategy that can be considered by traders is using a Butterfly. An option trade that is more typically associated with a neutral trading view, but here adapted to actually create a targeted (bearish) directional view.</p><p>Here, as an example, is a Butterfly with its center strikes focused at $80 in the stock, with a March 19th expiry:</p><p><img src=\"https://static.tigerbbs.com/f7cb8f9b0570e854f662f3031e50ca91\" tg-width=\"573\" tg-height=\"740\" referrerpolicy=\"no-referrer\"></p><p>This 130/80/30 butterfly has breakevens of 115 and 45, meaning the trade is profitable if the stock is between those two prices at March 19th expiry… with a max gain occurring if the stock is at or near $80. It has the additional dynamic of being short premium, and if the stock stays within its range would see mark to market gains if implied volatility compressed.</p>","source":"lsy1614334070724","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Gamestop And High Volatility Options</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nGamestop And High Volatility Options\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-02-26 18:12 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://learn.optionsai.com/gamestop-and-high-volatility-options/><strong>Options AI: Learn</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Gamestop Corp. shares have soared the past few days with the stock up nearly 200% at one point from last week (but still down significantly from recent short squeeze highs). We'll look at the unique ...</p>\n\n<a href=\"https://learn.optionsai.com/gamestop-and-high-volatility-options/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"GME":"游戏驿站"},"source_url":"https://learn.optionsai.com/gamestop-and-high-volatility-options/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1146313632","content_text":"Gamestop Corp. shares have soared the past few days with the stock up nearly 200% at one point from last week (but still down significantly from recent short squeeze highs). We'll look at the unique situations that arise in the options of a highly volatile stock like Gamestop and a few things that might be considered before trading options.Gamestop: The Expected MoveFirst, a look at how options are pricing upcoming moves. Here's theOptions AIexpected move chart for Gamestop, with a nearly 30% move being priced into this Friday's close. And a roughly 80% move being priced for the next month. A month that includes an earnings event (unconfirmed):Gamestop: Call Spreads vs Outright CallsUsing March 19th as an expiry we first looks at bullish spreads, and compare directly to outright calls. With a stock as volatile as Gamestop, calls can be expensive. Because of that, many traders resort to buying far out of the money calls. That demand for upside calls increases volatility in those calls, making them expensive relative to at-the-money calls – a phenomenon known as skew. However, for those that are bullish, this may create an opportunity to utilize spreads rather than buying an outright call. Let's see how.Here we'll focus on one alternative – using debit spreads to lower the overall cost of a directional trade (while potentially improving the probability of profit of the trade itself by lowering the breakeven level). It does so by selling those relatively expensive out-the-money Calls to help finance the purchase of a nearer to at-the-money Call.With Gamestop near $105, the March 19th 110/190 Debit Call Spread is roughly $15 and targets the bullish expected move for March 19th. The debit call spread would need the stock to be above $125 on March 19th to be profitable.As a comparison, the GME March 19th 200 calls are trading $29. That's nearly twice the cost for a 200 call that needs the stock above $229 by March 19th… versus a call spread, that needs the stock above $125. Here's a side by side comparison of those two trades on the Options AI chart. First, the 200 call:And next, the 145/200 debit call spread:As you can see, not only is the call spread less expensive, the point at which is becomes profitable to the upside is much closer to where the stock is currently trading. (As indicated by the grey price of the breakeven.)A note on probability of profit. The probability of profit displayed on these trades is based on the delta being assigned to the breakeven of the trade. The fact that a 200 call in a $105 stock is trading near 50 deltas shows just how distorting an effect Gamestop volatility is having on its options (hard to borrow, skew, retail demand for out-of-the-money calls).Directional Butterflies vs Outright PutsHigh volatility also affects bearish options trades. One of the counter-intuitive aspects of a high volatility stock like Gamestop is that its implied volatility can go up as the stock goes higher and down as the stock goes lower. This is the opposite of how we generally think about volatility. Therefore, buying outright puts carries a risk of collapsing volatility (and therefore collapsing premiums) as the stock goes lower. So, even though the stock is moving in the intended direction, as an option holder you may not be realizing the gains expected.One way to counter high implied volatility in a stock, especially when having a bearish view, is to be a net seller of option premium. To sell to bullish option traders rather than join bearish option traders. Traditionally that might take the form of selling a Credit Call Spread. But in GME's case that means buying the (expensive) upper strike Call at a higher volatility than the Call that is closer to the money (as described above).So, one option strategy that can be considered by traders is using a Butterfly. An option trade that is more typically associated with a neutral trading view, but here adapted to actually create a targeted (bearish) directional view.Here, as an example, is a Butterfly with its center strikes focused at $80 in the stock, with a March 19th expiry:This 130/80/30 butterfly has breakevens of 115 and 45, meaning the trade is profitable if the stock is between those two prices at March 19th expiry… with a max gain occurring if the stock is at or near $80. It has the additional dynamic of being short premium, and if the stock stays within its range would see mark to market gains if implied volatility compressed.","news_type":1,"symbols_score_info":{"GME":0.9}},"isVote":1,"tweetType":1,"viewCount":1250,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":368950317,"gmtCreate":1614275489439,"gmtModify":1703475767082,"author":{"id":"3575021854974950","authorId":"3575021854974950","name":"Xiozinc","avatar":"https://static.tigerbbs.com/ed7e0a12b6d1563dcfbdccfcae177723","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3575021854974950","authorIdStr":"3575021854974950"},"themes":[],"htmlText":"Round 2 baby to the moon!! Break 190 resistance today!?!","listText":"Round 2 baby to the moon!! Break 190 resistance today!?!","text":"Round 2 baby to the moon!! Break 190 resistance today!?!","images":[{"img":"https://static.tigerbbs.com/1b1c3fd5a38d5bece38c082442a2a9c7","width":"1080","height":"2622"}],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/368950317","isVote":1,"tweetType":1,"viewCount":996,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":1,"langContent":"EN","totalScore":0},{"id":387011070,"gmtCreate":1613698577090,"gmtModify":1634552607998,"author":{"id":"3575021854974950","authorId":"3575021854974950","name":"Xiozinc","avatar":"https://static.tigerbbs.com/ed7e0a12b6d1563dcfbdccfcae177723","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3575021854974950","authorIdStr":"3575021854974950"},"themes":[],"htmlText":"<a href=\"https://laohu8.com/S/SNDL\">$Sundial Growers Inc.(SNDL)$</a>Guh. Lucky to have closed most on peak","listText":"<a href=\"https://laohu8.com/S/SNDL\">$Sundial Growers Inc.(SNDL)$</a>Guh. Lucky to have closed most on peak","text":"$Sundial Growers Inc.(SNDL)$Guh. Lucky to have closed most on peak","images":[{"img":"https://static.tigerbbs.com/cd726271adcc4acf440e46ec1b13adf2","width":"1080","height":"1920"}],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/387011070","isVote":1,"tweetType":1,"viewCount":800,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":1,"langContent":"EN","totalScore":0},{"id":384102414,"gmtCreate":1613621575338,"gmtModify":1634552905524,"author":{"id":"3575021854974950","authorId":"3575021854974950","name":"Xiozinc","avatar":"https://static.tigerbbs.com/ed7e0a12b6d1563dcfbdccfcae177723","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3575021854974950","authorIdStr":"3575021854974950"},"themes":[],"htmlText":"Blant Pump and Dump. Like anyone would fall for it. Come on.","listText":"Blant Pump and Dump. Like anyone would fall for it. Come on.","text":"Blant Pump and Dump. Like anyone would fall for it. Come on.","images":[{"img":"https://static.tigerbbs.com/29a1fd43ccbb003836450c9832e253c5","width":"1080","height":"2509"}],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/384102414","isVote":1,"tweetType":1,"viewCount":1762,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":1,"langContent":"EN","totalScore":0},{"id":384106106,"gmtCreate":1613621458905,"gmtModify":1634552906507,"author":{"id":"3575021854974950","authorId":"3575021854974950","name":"Xiozinc","avatar":"https://static.tigerbbs.com/ed7e0a12b6d1563dcfbdccfcae177723","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3575021854974950","authorIdStr":"3575021854974950"},"themes":[],"htmlText":"<a href=\"https://laohu8.com/S/PLTR\">$Palantir Technologies Inc.(PLTR)$</a>Its never a loss if I don't close the deal.","listText":"<a href=\"https://laohu8.com/S/PLTR\">$Palantir Technologies Inc.(PLTR)$</a>Its never a loss if I don't close the deal.","text":"$Palantir Technologies Inc.(PLTR)$Its never a loss if I don't close the deal.","images":[{"img":"https://static.tigerbbs.com/8d4481b18e5d5d5fa33a16ec96d478d8","width":"1080","height":"1920"}],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":9,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/384106106","isVote":1,"tweetType":1,"viewCount":404,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":1,"langContent":"EN","totalScore":0},{"id":385734946,"gmtCreate":1613575313985,"gmtModify":1634553081893,"author":{"id":"3575021854974950","authorId":"3575021854974950","name":"Xiozinc","avatar":"https://static.tigerbbs.com/ed7e0a12b6d1563dcfbdccfcae177723","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3575021854974950","authorIdStr":"3575021854974950"},"themes":[],"htmlText":"Buy the dip duh.","listText":"Buy the dip duh.","text":"Buy the dip duh.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":2,"repostSize":0,"link":"https://laohu8.com/post/385734946","repostId":"1153738409","repostType":4,"isVote":1,"tweetType":1,"viewCount":146,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":385736599,"gmtCreate":1613575218611,"gmtModify":1634553082582,"author":{"id":"3575021854974950","authorId":"3575021854974950","name":"Xiozinc","avatar":"https://static.tigerbbs.com/ed7e0a12b6d1563dcfbdccfcae177723","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3575021854974950","authorIdStr":"3575021854974950"},"themes":[],"htmlText":"Should totally buy at 4.50","listText":"Should totally buy at 4.50","text":"Should totally buy at 4.50","images":[{"img":"https://static.tigerbbs.com/bbd6818d8faa43f1ea30a7d2ec8068a1","width":"1080","height":"2622"}],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/385736599","isVote":1,"tweetType":1,"viewCount":345,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":1,"langContent":"EN","totalScore":0},{"id":385738669,"gmtCreate":1613575172551,"gmtModify":1634553082928,"author":{"id":"3575021854974950","authorId":"3575021854974950","name":"Xiozinc","avatar":"https://static.tigerbbs.com/ed7e0a12b6d1563dcfbdccfcae177723","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3575021854974950","authorIdStr":"3575021854974950"},"themes":[],"htmlText":"<a href=\"https://laohu8.com/S/PLTR\">$Palantir Technologies Inc.(PLTR)$</a>solid la, go up thanks","listText":"<a href=\"https://laohu8.com/S/PLTR\">$Palantir Technologies Inc.(PLTR)$</a>solid la, go up thanks","text":"$Palantir Technologies Inc.(PLTR)$solid la, go up thanks","images":[{"img":"https://static.tigerbbs.com/1d83a8264bd2e8d942442463ed61c88a","width":"1080","height":"1920"}],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":6,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/385738669","isVote":1,"tweetType":1,"viewCount":352,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":1,"langContent":"EN","totalScore":0},{"id":382586030,"gmtCreate":1613467154120,"gmtModify":1634553572107,"author":{"id":"3575021854974950","authorId":"3575021854974950","name":"Xiozinc","avatar":"https://static.tigerbbs.com/ed7e0a12b6d1563dcfbdccfcae177723","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3575021854974950","authorIdStr":"3575021854974950"},"themes":[],"htmlText":"No","listText":"No","text":"No","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":2,"repostSize":0,"link":"https://laohu8.com/post/382586030","repostId":"1143750442","repostType":4,"repost":{"id":"1143750442","kind":"news","weMediaInfo":{"introduction":"Stock Market Quotes, Business News, Financial News, Trading Ideas, and Stock Research by Professionals","home_visible":0,"media_name":"Benzinga","id":"1052270027","head_image":"https://static.tigerbbs.com/d08bf7808052c0ca9deb4e944cae32aa"},"pubTimestamp":1613454014,"share":"https://www.laohu8.com/m/news/1143750442?lang=&edition=full","pubTime":"2021-02-16 13:40","market":"us","language":"en","title":"The Great SPAC Debate: Are They In A Bubble?","url":"https://stock-news.laohu8.com/highlight/detail?id=1143750442","media":"Benzinga","summary":"The soaring valuations handed out to newly public companies in the initial public offering boom has ","content":"<p>The soaring valuations handed out to newly public companies in the initial public offering boom has led some to believe there's an IPO bubble. One part of this potential bubble is the rise in special purpose acquisition companies or SPACs.</p>\n<p>More than half of the IPOs in 2020 were done through SPACs, which are blank check companies created to merge with another firm, taking it public in the process. So is the current market sustainable, or is there indeed a bubble that will pop at some point?</p>\n<p>Many hedge funds have written about the SPAC tend in their recent letters to investors, but most of them are bullish. Sabrepoint has taken a contrarian view, as portfolio manager George Baxter believes there is a bubble. He said in the fund's fourth-quarter letter that they're finding many short opportunities in SPACs.</p>\n<p>Baxter noted that many of the SPACs that held IPOs in 2020 are subject to lockups that will expire at an accelerating rate starting next month. He believes this sudden supply of shares will overwhelm investor enthusiasm for SPACs, creating what he considers to be \"one of the best opportunities on the short side since our inception.\"</p>\n<p>In a recent report, Goldman Sachs analyst Allison Nathan and her team weighed the issues surrounding SPACs and considered whether they are indeed in bubble territory. They looked at whether the entire IPO market is in a bubble and whether just the SPAC part of the IPO market is in a bubble.</p>\n<p><b>Are SPACs In A Bubble?</b></p>\n<p>Nathan spoke to several SPAC experts, including University of Florida Professor Jay Ritter and Stanford Law School Professor Michael Klausner. They agree that the answer to the question of whether SPACs are good investments depends on whether you are talking about pre- or post-merger investors.</p>\n<p>Pre-merger investors usually make strong positive returns with little to no risk, while post-merger investors typically see negative returns and shoulder all the risk associated with SPACs. Klausner argues that the SPAC structure requires substantial dilution and a considerable cost borne almost entirely by post-merger shareholders.</p>\n<p>He doesn't believe such a structure is sustainable and predicts that unless SPACs evolve, they will eventually die out. Klausner also believes the SPAC market is a bubble that's likely to burst. He noted that SPAC share prices jump on mere rumors of a deal. Further, he pointed out that substantial price pops occur on some deal announcements, which he doesn't believe are based on fundamentals.</p>\n<p><b>The Year Of The SPAC</b></p>\n<p>Nathan asked Ritter how the recent IPO boom compares to past cycles. He said the comparison depends on how IPOs are defined. In a typical year in the 1990s, over 300 companies went public, but 165 went public last year, excluding SPACs and foreign companies using ADRs. In the 1990s, SPACs were almost unheard of, but in 2020, there were 248 SPAC IPOs. Including SPACs, there were more than 400 IPOs last year, which is the highest number in two decades.</p>\n<p>Another big difference between the 1990s and the current IPO boom is the fact that many tech companies have been waiting to go public, relying on venture capital instead. However, that trend could be changing, and Ritter said many companies have gotten more motivated to go public due to the high valuations the IPO market has attracted.</p>\n<p>David Kostin and Cormac Conners of Goldman Sachs also talked about 2020 as the year of the SPAC. They highlighted another reason SPACs got so hot last year, which is that SPAC sponsors shifted their focus from value to growth. Between 2010 and 2019, over half of SPAC acquisitions were in the industrials, financials and energy sectors, but last year, 60% of the SPAC mergers completed were in tech, consumer discretionary and healthcare.</p>\n<p>The&nbsp;SPAC market&nbsp;doesn't show any signs of slowing down, so if it is in a bubble, it hasn't reached its popping point yet. Goldman Sachs noted that in the first three weeks of this year, 56 SPACs were brought to market in the U.S.</p>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>The Great SPAC Debate: Are They In A Bubble?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nThe Great SPAC Debate: Are They In A Bubble?\n</h2>\n\n<h4 class=\"meta\">\n\n\n<div class=\"head\" \">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/d08bf7808052c0ca9deb4e944cae32aa);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Benzinga </p>\n<p class=\"h-time\">2021-02-16 13:40</p>\n</div>\n\n</div>\n\n\n</h4>\n\n</header>\n<article>\n<p>The soaring valuations handed out to newly public companies in the initial public offering boom has led some to believe there's an IPO bubble. One part of this potential bubble is the rise in special purpose acquisition companies or SPACs.</p>\n<p>More than half of the IPOs in 2020 were done through SPACs, which are blank check companies created to merge with another firm, taking it public in the process. So is the current market sustainable, or is there indeed a bubble that will pop at some point?</p>\n<p>Many hedge funds have written about the SPAC tend in their recent letters to investors, but most of them are bullish. Sabrepoint has taken a contrarian view, as portfolio manager George Baxter believes there is a bubble. He said in the fund's fourth-quarter letter that they're finding many short opportunities in SPACs.</p>\n<p>Baxter noted that many of the SPACs that held IPOs in 2020 are subject to lockups that will expire at an accelerating rate starting next month. He believes this sudden supply of shares will overwhelm investor enthusiasm for SPACs, creating what he considers to be \"one of the best opportunities on the short side since our inception.\"</p>\n<p>In a recent report, Goldman Sachs analyst Allison Nathan and her team weighed the issues surrounding SPACs and considered whether they are indeed in bubble territory. They looked at whether the entire IPO market is in a bubble and whether just the SPAC part of the IPO market is in a bubble.</p>\n<p><b>Are SPACs In A Bubble?</b></p>\n<p>Nathan spoke to several SPAC experts, including University of Florida Professor Jay Ritter and Stanford Law School Professor Michael Klausner. They agree that the answer to the question of whether SPACs are good investments depends on whether you are talking about pre- or post-merger investors.</p>\n<p>Pre-merger investors usually make strong positive returns with little to no risk, while post-merger investors typically see negative returns and shoulder all the risk associated with SPACs. Klausner argues that the SPAC structure requires substantial dilution and a considerable cost borne almost entirely by post-merger shareholders.</p>\n<p>He doesn't believe such a structure is sustainable and predicts that unless SPACs evolve, they will eventually die out. Klausner also believes the SPAC market is a bubble that's likely to burst. He noted that SPAC share prices jump on mere rumors of a deal. Further, he pointed out that substantial price pops occur on some deal announcements, which he doesn't believe are based on fundamentals.</p>\n<p><b>The Year Of The SPAC</b></p>\n<p>Nathan asked Ritter how the recent IPO boom compares to past cycles. He said the comparison depends on how IPOs are defined. In a typical year in the 1990s, over 300 companies went public, but 165 went public last year, excluding SPACs and foreign companies using ADRs. In the 1990s, SPACs were almost unheard of, but in 2020, there were 248 SPAC IPOs. Including SPACs, there were more than 400 IPOs last year, which is the highest number in two decades.</p>\n<p>Another big difference between the 1990s and the current IPO boom is the fact that many tech companies have been waiting to go public, relying on venture capital instead. However, that trend could be changing, and Ritter said many companies have gotten more motivated to go public due to the high valuations the IPO market has attracted.</p>\n<p>David Kostin and Cormac Conners of Goldman Sachs also talked about 2020 as the year of the SPAC. They highlighted another reason SPACs got so hot last year, which is that SPAC sponsors shifted their focus from value to growth. Between 2010 and 2019, over half of SPAC acquisitions were in the industrials, financials and energy sectors, but last year, 60% of the SPAC mergers completed were in tech, consumer discretionary and healthcare.</p>\n<p>The&nbsp;SPAC market&nbsp;doesn't show any signs of slowing down, so if it is in a bubble, it hasn't reached its popping point yet. Goldman Sachs noted that in the first three weeks of this year, 56 SPACs were brought to market in the U.S.</p>\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{".IXIC":"NASDAQ Composite",".DJI":"道琼斯",".SPX":"S&P 500 Index"},"is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1143750442","content_text":"The soaring valuations handed out to newly public companies in the initial public offering boom has led some to believe there's an IPO bubble. One part of this potential bubble is the rise in special purpose acquisition companies or SPACs.\nMore than half of the IPOs in 2020 were done through SPACs, which are blank check companies created to merge with another firm, taking it public in the process. So is the current market sustainable, or is there indeed a bubble that will pop at some point?\nMany hedge funds have written about the SPAC tend in their recent letters to investors, but most of them are bullish. Sabrepoint has taken a contrarian view, as portfolio manager George Baxter believes there is a bubble. He said in the fund's fourth-quarter letter that they're finding many short opportunities in SPACs.\nBaxter noted that many of the SPACs that held IPOs in 2020 are subject to lockups that will expire at an accelerating rate starting next month. He believes this sudden supply of shares will overwhelm investor enthusiasm for SPACs, creating what he considers to be \"one of the best opportunities on the short side since our inception.\"\nIn a recent report, Goldman Sachs analyst Allison Nathan and her team weighed the issues surrounding SPACs and considered whether they are indeed in bubble territory. They looked at whether the entire IPO market is in a bubble and whether just the SPAC part of the IPO market is in a bubble.\nAre SPACs In A Bubble?\nNathan spoke to several SPAC experts, including University of Florida Professor Jay Ritter and Stanford Law School Professor Michael Klausner. They agree that the answer to the question of whether SPACs are good investments depends on whether you are talking about pre- or post-merger investors.\nPre-merger investors usually make strong positive returns with little to no risk, while post-merger investors typically see negative returns and shoulder all the risk associated with SPACs. Klausner argues that the SPAC structure requires substantial dilution and a considerable cost borne almost entirely by post-merger shareholders.\nHe doesn't believe such a structure is sustainable and predicts that unless SPACs evolve, they will eventually die out. Klausner also believes the SPAC market is a bubble that's likely to burst. He noted that SPAC share prices jump on mere rumors of a deal. Further, he pointed out that substantial price pops occur on some deal announcements, which he doesn't believe are based on fundamentals.\nThe Year Of The SPAC\nNathan asked Ritter how the recent IPO boom compares to past cycles. He said the comparison depends on how IPOs are defined. In a typical year in the 1990s, over 300 companies went public, but 165 went public last year, excluding SPACs and foreign companies using ADRs. In the 1990s, SPACs were almost unheard of, but in 2020, there were 248 SPAC IPOs. Including SPACs, there were more than 400 IPOs last year, which is the highest number in two decades.\nAnother big difference between the 1990s and the current IPO boom is the fact that many tech companies have been waiting to go public, relying on venture capital instead. However, that trend could be changing, and Ritter said many companies have gotten more motivated to go public due to the high valuations the IPO market has attracted.\nDavid Kostin and Cormac Conners of Goldman Sachs also talked about 2020 as the year of the SPAC. They highlighted another reason SPACs got so hot last year, which is that SPAC sponsors shifted their focus from value to growth. Between 2010 and 2019, over half of SPAC acquisitions were in the industrials, financials and energy sectors, but last year, 60% of the SPAC mergers completed were in tech, consumer discretionary and healthcare.\nThe SPAC market doesn't show any signs of slowing down, so if it is in a bubble, it hasn't reached its popping point yet. Goldman Sachs noted that in the first three weeks of this year, 56 SPACs were brought to market in the U.S.","news_type":1,"symbols_score_info":{".DJI":0.9,".IXIC":0.9,".SPX":0.9}},"isVote":1,"tweetType":1,"viewCount":392,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":382510960,"gmtCreate":1613466011350,"gmtModify":1634553577402,"author":{"id":"3575021854974950","authorId":"3575021854974950","name":"Xiozinc","avatar":"https://static.tigerbbs.com/ed7e0a12b6d1563dcfbdccfcae177723","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3575021854974950","authorIdStr":"3575021854974950"},"themes":[],"htmlText":"<a href=\"https://laohu8.com/S/AAPL\">$Apple(AAPL)$</a>haiz","listText":"<a href=\"https://laohu8.com/S/AAPL\">$Apple(AAPL)$</a>haiz","text":"$Apple(AAPL)$haiz","images":[{"img":"https://static.tigerbbs.com/55e507a337bb7c60434ab43147bc5fbf","width":"1080","height":"1920"}],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/382510960","isVote":1,"tweetType":1,"viewCount":291,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":1,"langContent":"EN","totalScore":0},{"id":382537144,"gmtCreate":1613465900688,"gmtModify":1634553577749,"author":{"id":"3575021854974950","authorId":"3575021854974950","name":"Xiozinc","avatar":"https://static.tigerbbs.com/ed7e0a12b6d1563dcfbdccfcae177723","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3575021854974950","authorIdStr":"3575021854974950"},"themes":[],"htmlText":"Aapl 400by 2022 let's go","listText":"Aapl 400by 2022 let's go","text":"Aapl 400by 2022 let's go","images":[{"img":"https://static.tigerbbs.com/bd1bc99b618b62baf12f755cd46469d3","width":"1080","height":"1979"}],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/382537144","isVote":1,"tweetType":1,"viewCount":248,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":1,"langContent":"EN","totalScore":0}],"hots":[{"id":384106106,"gmtCreate":1613621458905,"gmtModify":1634552906507,"author":{"id":"3575021854974950","authorId":"3575021854974950","name":"Xiozinc","avatar":"https://static.tigerbbs.com/ed7e0a12b6d1563dcfbdccfcae177723","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3575021854974950","authorIdStr":"3575021854974950"},"themes":[],"htmlText":"<a href=\"https://laohu8.com/S/PLTR\">$Palantir Technologies Inc.(PLTR)$</a>Its never a loss if I don't close the deal.","listText":"<a href=\"https://laohu8.com/S/PLTR\">$Palantir Technologies Inc.(PLTR)$</a>Its never a loss if I don't close the deal.","text":"$Palantir Technologies Inc.(PLTR)$Its never a loss if I don't close the deal.","images":[{"img":"https://static.tigerbbs.com/8d4481b18e5d5d5fa33a16ec96d478d8","width":"1080","height":"1920"}],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":9,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/384106106","isVote":1,"tweetType":1,"viewCount":404,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":1,"langContent":"EN","totalScore":0},{"id":347152488,"gmtCreate":1618477696044,"gmtModify":1631885600986,"author":{"id":"3575021854974950","authorId":"3575021854974950","name":"Xiozinc","avatar":"https://static.tigerbbs.com/ed7e0a12b6d1563dcfbdccfcae177723","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3575021854974950","authorIdStr":"3575021854974950"},"themes":[],"htmlText":"<a href=\"https://laohu8.com/S/C6L.SI\">$SINGAPORE AIRLINES LTD(C6L.SI)$</a>buy buy buy!!","listText":"<a href=\"https://laohu8.com/S/C6L.SI\">$SINGAPORE AIRLINES LTD(C6L.SI)$</a>buy buy buy!!","text":"$SINGAPORE AIRLINES LTD(C6L.SI)$buy buy buy!!","images":[{"img":"https://static.tigerbbs.com/a9c45ea38f22466aa9e026eee4f18ecf","width":"1080","height":"1920"}],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":1,"repostSize":1,"link":"https://laohu8.com/post/347152488","isVote":1,"tweetType":1,"viewCount":2036,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":1,"langContent":"EN","totalScore":0},{"id":385734946,"gmtCreate":1613575313985,"gmtModify":1634553081893,"author":{"id":"3575021854974950","authorId":"3575021854974950","name":"Xiozinc","avatar":"https://static.tigerbbs.com/ed7e0a12b6d1563dcfbdccfcae177723","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3575021854974950","authorIdStr":"3575021854974950"},"themes":[],"htmlText":"Buy the dip duh.","listText":"Buy the dip duh.","text":"Buy the dip duh.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":2,"repostSize":0,"link":"https://laohu8.com/post/385734946","repostId":"1153738409","repostType":4,"isVote":1,"tweetType":1,"viewCount":146,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":385738669,"gmtCreate":1613575172551,"gmtModify":1634553082928,"author":{"id":"3575021854974950","authorId":"3575021854974950","name":"Xiozinc","avatar":"https://static.tigerbbs.com/ed7e0a12b6d1563dcfbdccfcae177723","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3575021854974950","authorIdStr":"3575021854974950"},"themes":[],"htmlText":"<a href=\"https://laohu8.com/S/PLTR\">$Palantir Technologies Inc.(PLTR)$</a>solid la, go up thanks","listText":"<a href=\"https://laohu8.com/S/PLTR\">$Palantir Technologies Inc.(PLTR)$</a>solid la, go up thanks","text":"$Palantir Technologies Inc.(PLTR)$solid la, go up thanks","images":[{"img":"https://static.tigerbbs.com/1d83a8264bd2e8d942442463ed61c88a","width":"1080","height":"1920"}],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":6,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/385738669","isVote":1,"tweetType":1,"viewCount":352,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":1,"langContent":"EN","totalScore":0},{"id":382586030,"gmtCreate":1613467154120,"gmtModify":1634553572107,"author":{"id":"3575021854974950","authorId":"3575021854974950","name":"Xiozinc","avatar":"https://static.tigerbbs.com/ed7e0a12b6d1563dcfbdccfcae177723","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3575021854974950","authorIdStr":"3575021854974950"},"themes":[],"htmlText":"No","listText":"No","text":"No","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":2,"repostSize":0,"link":"https://laohu8.com/post/382586030","repostId":"1143750442","repostType":4,"repost":{"id":"1143750442","kind":"news","weMediaInfo":{"introduction":"Stock Market Quotes, Business News, Financial News, Trading Ideas, and Stock Research by Professionals","home_visible":0,"media_name":"Benzinga","id":"1052270027","head_image":"https://static.tigerbbs.com/d08bf7808052c0ca9deb4e944cae32aa"},"pubTimestamp":1613454014,"share":"https://www.laohu8.com/m/news/1143750442?lang=&edition=full","pubTime":"2021-02-16 13:40","market":"us","language":"en","title":"The Great SPAC Debate: Are They In A Bubble?","url":"https://stock-news.laohu8.com/highlight/detail?id=1143750442","media":"Benzinga","summary":"The soaring valuations handed out to newly public companies in the initial public offering boom has ","content":"<p>The soaring valuations handed out to newly public companies in the initial public offering boom has led some to believe there's an IPO bubble. One part of this potential bubble is the rise in special purpose acquisition companies or SPACs.</p>\n<p>More than half of the IPOs in 2020 were done through SPACs, which are blank check companies created to merge with another firm, taking it public in the process. So is the current market sustainable, or is there indeed a bubble that will pop at some point?</p>\n<p>Many hedge funds have written about the SPAC tend in their recent letters to investors, but most of them are bullish. Sabrepoint has taken a contrarian view, as portfolio manager George Baxter believes there is a bubble. He said in the fund's fourth-quarter letter that they're finding many short opportunities in SPACs.</p>\n<p>Baxter noted that many of the SPACs that held IPOs in 2020 are subject to lockups that will expire at an accelerating rate starting next month. He believes this sudden supply of shares will overwhelm investor enthusiasm for SPACs, creating what he considers to be \"one of the best opportunities on the short side since our inception.\"</p>\n<p>In a recent report, Goldman Sachs analyst Allison Nathan and her team weighed the issues surrounding SPACs and considered whether they are indeed in bubble territory. They looked at whether the entire IPO market is in a bubble and whether just the SPAC part of the IPO market is in a bubble.</p>\n<p><b>Are SPACs In A Bubble?</b></p>\n<p>Nathan spoke to several SPAC experts, including University of Florida Professor Jay Ritter and Stanford Law School Professor Michael Klausner. They agree that the answer to the question of whether SPACs are good investments depends on whether you are talking about pre- or post-merger investors.</p>\n<p>Pre-merger investors usually make strong positive returns with little to no risk, while post-merger investors typically see negative returns and shoulder all the risk associated with SPACs. Klausner argues that the SPAC structure requires substantial dilution and a considerable cost borne almost entirely by post-merger shareholders.</p>\n<p>He doesn't believe such a structure is sustainable and predicts that unless SPACs evolve, they will eventually die out. Klausner also believes the SPAC market is a bubble that's likely to burst. He noted that SPAC share prices jump on mere rumors of a deal. Further, he pointed out that substantial price pops occur on some deal announcements, which he doesn't believe are based on fundamentals.</p>\n<p><b>The Year Of The SPAC</b></p>\n<p>Nathan asked Ritter how the recent IPO boom compares to past cycles. He said the comparison depends on how IPOs are defined. In a typical year in the 1990s, over 300 companies went public, but 165 went public last year, excluding SPACs and foreign companies using ADRs. In the 1990s, SPACs were almost unheard of, but in 2020, there were 248 SPAC IPOs. Including SPACs, there were more than 400 IPOs last year, which is the highest number in two decades.</p>\n<p>Another big difference between the 1990s and the current IPO boom is the fact that many tech companies have been waiting to go public, relying on venture capital instead. However, that trend could be changing, and Ritter said many companies have gotten more motivated to go public due to the high valuations the IPO market has attracted.</p>\n<p>David Kostin and Cormac Conners of Goldman Sachs also talked about 2020 as the year of the SPAC. They highlighted another reason SPACs got so hot last year, which is that SPAC sponsors shifted their focus from value to growth. Between 2010 and 2019, over half of SPAC acquisitions were in the industrials, financials and energy sectors, but last year, 60% of the SPAC mergers completed were in tech, consumer discretionary and healthcare.</p>\n<p>The&nbsp;SPAC market&nbsp;doesn't show any signs of slowing down, so if it is in a bubble, it hasn't reached its popping point yet. Goldman Sachs noted that in the first three weeks of this year, 56 SPACs were brought to market in the U.S.</p>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>The Great SPAC Debate: Are They In A Bubble?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nThe Great SPAC Debate: Are They In A Bubble?\n</h2>\n\n<h4 class=\"meta\">\n\n\n<div class=\"head\" \">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/d08bf7808052c0ca9deb4e944cae32aa);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Benzinga </p>\n<p class=\"h-time\">2021-02-16 13:40</p>\n</div>\n\n</div>\n\n\n</h4>\n\n</header>\n<article>\n<p>The soaring valuations handed out to newly public companies in the initial public offering boom has led some to believe there's an IPO bubble. One part of this potential bubble is the rise in special purpose acquisition companies or SPACs.</p>\n<p>More than half of the IPOs in 2020 were done through SPACs, which are blank check companies created to merge with another firm, taking it public in the process. So is the current market sustainable, or is there indeed a bubble that will pop at some point?</p>\n<p>Many hedge funds have written about the SPAC tend in their recent letters to investors, but most of them are bullish. Sabrepoint has taken a contrarian view, as portfolio manager George Baxter believes there is a bubble. He said in the fund's fourth-quarter letter that they're finding many short opportunities in SPACs.</p>\n<p>Baxter noted that many of the SPACs that held IPOs in 2020 are subject to lockups that will expire at an accelerating rate starting next month. He believes this sudden supply of shares will overwhelm investor enthusiasm for SPACs, creating what he considers to be \"one of the best opportunities on the short side since our inception.\"</p>\n<p>In a recent report, Goldman Sachs analyst Allison Nathan and her team weighed the issues surrounding SPACs and considered whether they are indeed in bubble territory. They looked at whether the entire IPO market is in a bubble and whether just the SPAC part of the IPO market is in a bubble.</p>\n<p><b>Are SPACs In A Bubble?</b></p>\n<p>Nathan spoke to several SPAC experts, including University of Florida Professor Jay Ritter and Stanford Law School Professor Michael Klausner. They agree that the answer to the question of whether SPACs are good investments depends on whether you are talking about pre- or post-merger investors.</p>\n<p>Pre-merger investors usually make strong positive returns with little to no risk, while post-merger investors typically see negative returns and shoulder all the risk associated with SPACs. Klausner argues that the SPAC structure requires substantial dilution and a considerable cost borne almost entirely by post-merger shareholders.</p>\n<p>He doesn't believe such a structure is sustainable and predicts that unless SPACs evolve, they will eventually die out. Klausner also believes the SPAC market is a bubble that's likely to burst. He noted that SPAC share prices jump on mere rumors of a deal. Further, he pointed out that substantial price pops occur on some deal announcements, which he doesn't believe are based on fundamentals.</p>\n<p><b>The Year Of The SPAC</b></p>\n<p>Nathan asked Ritter how the recent IPO boom compares to past cycles. He said the comparison depends on how IPOs are defined. In a typical year in the 1990s, over 300 companies went public, but 165 went public last year, excluding SPACs and foreign companies using ADRs. In the 1990s, SPACs were almost unheard of, but in 2020, there were 248 SPAC IPOs. Including SPACs, there were more than 400 IPOs last year, which is the highest number in two decades.</p>\n<p>Another big difference between the 1990s and the current IPO boom is the fact that many tech companies have been waiting to go public, relying on venture capital instead. However, that trend could be changing, and Ritter said many companies have gotten more motivated to go public due to the high valuations the IPO market has attracted.</p>\n<p>David Kostin and Cormac Conners of Goldman Sachs also talked about 2020 as the year of the SPAC. They highlighted another reason SPACs got so hot last year, which is that SPAC sponsors shifted their focus from value to growth. Between 2010 and 2019, over half of SPAC acquisitions were in the industrials, financials and energy sectors, but last year, 60% of the SPAC mergers completed were in tech, consumer discretionary and healthcare.</p>\n<p>The&nbsp;SPAC market&nbsp;doesn't show any signs of slowing down, so if it is in a bubble, it hasn't reached its popping point yet. Goldman Sachs noted that in the first three weeks of this year, 56 SPACs were brought to market in the U.S.</p>\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{".IXIC":"NASDAQ Composite",".DJI":"道琼斯",".SPX":"S&P 500 Index"},"is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1143750442","content_text":"The soaring valuations handed out to newly public companies in the initial public offering boom has led some to believe there's an IPO bubble. One part of this potential bubble is the rise in special purpose acquisition companies or SPACs.\nMore than half of the IPOs in 2020 were done through SPACs, which are blank check companies created to merge with another firm, taking it public in the process. So is the current market sustainable, or is there indeed a bubble that will pop at some point?\nMany hedge funds have written about the SPAC tend in their recent letters to investors, but most of them are bullish. Sabrepoint has taken a contrarian view, as portfolio manager George Baxter believes there is a bubble. He said in the fund's fourth-quarter letter that they're finding many short opportunities in SPACs.\nBaxter noted that many of the SPACs that held IPOs in 2020 are subject to lockups that will expire at an accelerating rate starting next month. He believes this sudden supply of shares will overwhelm investor enthusiasm for SPACs, creating what he considers to be \"one of the best opportunities on the short side since our inception.\"\nIn a recent report, Goldman Sachs analyst Allison Nathan and her team weighed the issues surrounding SPACs and considered whether they are indeed in bubble territory. They looked at whether the entire IPO market is in a bubble and whether just the SPAC part of the IPO market is in a bubble.\nAre SPACs In A Bubble?\nNathan spoke to several SPAC experts, including University of Florida Professor Jay Ritter and Stanford Law School Professor Michael Klausner. They agree that the answer to the question of whether SPACs are good investments depends on whether you are talking about pre- or post-merger investors.\nPre-merger investors usually make strong positive returns with little to no risk, while post-merger investors typically see negative returns and shoulder all the risk associated with SPACs. Klausner argues that the SPAC structure requires substantial dilution and a considerable cost borne almost entirely by post-merger shareholders.\nHe doesn't believe such a structure is sustainable and predicts that unless SPACs evolve, they will eventually die out. Klausner also believes the SPAC market is a bubble that's likely to burst. He noted that SPAC share prices jump on mere rumors of a deal. Further, he pointed out that substantial price pops occur on some deal announcements, which he doesn't believe are based on fundamentals.\nThe Year Of The SPAC\nNathan asked Ritter how the recent IPO boom compares to past cycles. He said the comparison depends on how IPOs are defined. In a typical year in the 1990s, over 300 companies went public, but 165 went public last year, excluding SPACs and foreign companies using ADRs. In the 1990s, SPACs were almost unheard of, but in 2020, there were 248 SPAC IPOs. Including SPACs, there were more than 400 IPOs last year, which is the highest number in two decades.\nAnother big difference between the 1990s and the current IPO boom is the fact that many tech companies have been waiting to go public, relying on venture capital instead. However, that trend could be changing, and Ritter said many companies have gotten more motivated to go public due to the high valuations the IPO market has attracted.\nDavid Kostin and Cormac Conners of Goldman Sachs also talked about 2020 as the year of the SPAC. They highlighted another reason SPACs got so hot last year, which is that SPAC sponsors shifted their focus from value to growth. Between 2010 and 2019, over half of SPAC acquisitions were in the industrials, financials and energy sectors, but last year, 60% of the SPAC mergers completed were in tech, consumer discretionary and healthcare.\nThe SPAC market doesn't show any signs of slowing down, so if it is in a bubble, it hasn't reached its popping point yet. Goldman Sachs noted that in the first three weeks of this year, 56 SPACs were brought to market in the U.S.","news_type":1,"symbols_score_info":{".DJI":0.9,".IXIC":0.9,".SPX":0.9}},"isVote":1,"tweetType":1,"viewCount":392,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":359766883,"gmtCreate":1616424588642,"gmtModify":1634525880978,"author":{"id":"3575021854974950","authorId":"3575021854974950","name":"Xiozinc","avatar":"https://static.tigerbbs.com/ed7e0a12b6d1563dcfbdccfcae177723","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3575021854974950","authorIdStr":"3575021854974950"},"themes":[],"htmlText":"<a href=\"https://laohu8.com/S/RLX\">$RLX Technology(RLX)$</a>\"be fearful when people are greedy, and be greedy when people are fearful\" - my billionaire homie. Its an overreaction from the public, get on this now!!!!","listText":"<a href=\"https://laohu8.com/S/RLX\">$RLX Technology(RLX)$</a>\"be fearful when people are greedy, and be greedy when people are fearful\" - my billionaire homie. Its an overreaction from the public, get on this now!!!!","text":"$RLX Technology(RLX)$\"be fearful when people are greedy, and be greedy when people are fearful\" - my billionaire homie. Its an overreaction from the public, get on this now!!!!","images":[{"img":"https://static.tigerbbs.com/d48dff5d7c44a45d28191f59e99479bb","width":"1080","height":"1920"}],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":2,"repostSize":0,"link":"https://laohu8.com/post/359766883","isVote":1,"tweetType":1,"viewCount":2524,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":1,"langContent":"EN","totalScore":0},{"id":322188841,"gmtCreate":1615783159183,"gmtModify":1703492885910,"author":{"id":"3575021854974950","authorId":"3575021854974950","name":"Xiozinc","avatar":"https://static.tigerbbs.com/ed7e0a12b6d1563dcfbdccfcae177723","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3575021854974950","authorIdStr":"3575021854974950"},"themes":[],"htmlText":"<a href=\"https://laohu8.com/S/C6L.SI\">$SINGAPORE AIRLINES LTD(C6L.SI)$</a>lets&nbsp; gooo","listText":"<a href=\"https://laohu8.com/S/C6L.SI\">$SINGAPORE AIRLINES LTD(C6L.SI)$</a>lets&nbsp; gooo","text":"$SINGAPORE AIRLINES LTD(C6L.SI)$lets gooo","images":[{"img":"https://static.tigerbbs.com/4cfb736486318b7abf2f3df3e3fa37d6","width":"1080","height":"1920"}],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/322188841","isVote":1,"tweetType":1,"viewCount":1170,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":1,"langContent":"EN","totalScore":0},{"id":385736599,"gmtCreate":1613575218611,"gmtModify":1634553082582,"author":{"id":"3575021854974950","authorId":"3575021854974950","name":"Xiozinc","avatar":"https://static.tigerbbs.com/ed7e0a12b6d1563dcfbdccfcae177723","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3575021854974950","authorIdStr":"3575021854974950"},"themes":[],"htmlText":"Should totally buy at 4.50","listText":"Should totally buy at 4.50","text":"Should totally buy at 4.50","images":[{"img":"https://static.tigerbbs.com/bbd6818d8faa43f1ea30a7d2ec8068a1","width":"1080","height":"2622"}],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/385736599","isVote":1,"tweetType":1,"viewCount":345,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":1,"langContent":"EN","totalScore":0},{"id":347152883,"gmtCreate":1618477658242,"gmtModify":1631885600975,"author":{"id":"3575021854974950","authorId":"3575021854974950","name":"Xiozinc","avatar":"https://static.tigerbbs.com/ed7e0a12b6d1563dcfbdccfcae177723","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3575021854974950","authorIdStr":"3575021854974950"},"themes":[],"htmlText":"<a href=\"https://laohu8.com/S/C6L.SI\">$SINGAPORE AIRLINES LTD(C6L.SI)$</a>buy more 👍👍","listText":"<a href=\"https://laohu8.com/S/C6L.SI\">$SINGAPORE AIRLINES LTD(C6L.SI)$</a>buy more 👍👍","text":"$SINGAPORE AIRLINES LTD(C6L.SI)$buy more 👍👍","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/347152883","isVote":1,"tweetType":1,"viewCount":1188,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":387011070,"gmtCreate":1613698577090,"gmtModify":1634552607998,"author":{"id":"3575021854974950","authorId":"3575021854974950","name":"Xiozinc","avatar":"https://static.tigerbbs.com/ed7e0a12b6d1563dcfbdccfcae177723","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3575021854974950","authorIdStr":"3575021854974950"},"themes":[],"htmlText":"<a href=\"https://laohu8.com/S/SNDL\">$Sundial Growers Inc.(SNDL)$</a>Guh. Lucky to have closed most on peak","listText":"<a href=\"https://laohu8.com/S/SNDL\">$Sundial Growers Inc.(SNDL)$</a>Guh. Lucky to have closed most on peak","text":"$Sundial Growers Inc.(SNDL)$Guh. Lucky to have closed most on peak","images":[{"img":"https://static.tigerbbs.com/cd726271adcc4acf440e46ec1b13adf2","width":"1080","height":"1920"}],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/387011070","isVote":1,"tweetType":1,"viewCount":800,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":1,"langContent":"EN","totalScore":0},{"id":384102414,"gmtCreate":1613621575338,"gmtModify":1634552905524,"author":{"id":"3575021854974950","authorId":"3575021854974950","name":"Xiozinc","avatar":"https://static.tigerbbs.com/ed7e0a12b6d1563dcfbdccfcae177723","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3575021854974950","authorIdStr":"3575021854974950"},"themes":[],"htmlText":"Blant Pump and Dump. Like anyone would fall for it. Come on.","listText":"Blant Pump and Dump. Like anyone would fall for it. Come on.","text":"Blant Pump and Dump. Like anyone would fall for it. Come on.","images":[{"img":"https://static.tigerbbs.com/29a1fd43ccbb003836450c9832e253c5","width":"1080","height":"2509"}],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/384102414","isVote":1,"tweetType":1,"viewCount":1762,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":1,"langContent":"EN","totalScore":0},{"id":382510960,"gmtCreate":1613466011350,"gmtModify":1634553577402,"author":{"id":"3575021854974950","authorId":"3575021854974950","name":"Xiozinc","avatar":"https://static.tigerbbs.com/ed7e0a12b6d1563dcfbdccfcae177723","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3575021854974950","authorIdStr":"3575021854974950"},"themes":[],"htmlText":"<a href=\"https://laohu8.com/S/AAPL\">$Apple(AAPL)$</a>haiz","listText":"<a href=\"https://laohu8.com/S/AAPL\">$Apple(AAPL)$</a>haiz","text":"$Apple(AAPL)$haiz","images":[{"img":"https://static.tigerbbs.com/55e507a337bb7c60434ab43147bc5fbf","width":"1080","height":"1920"}],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/382510960","isVote":1,"tweetType":1,"viewCount":291,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":1,"langContent":"EN","totalScore":0},{"id":382537144,"gmtCreate":1613465900688,"gmtModify":1634553577749,"author":{"id":"3575021854974950","authorId":"3575021854974950","name":"Xiozinc","avatar":"https://static.tigerbbs.com/ed7e0a12b6d1563dcfbdccfcae177723","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3575021854974950","authorIdStr":"3575021854974950"},"themes":[],"htmlText":"Aapl 400by 2022 let's go","listText":"Aapl 400by 2022 let's go","text":"Aapl 400by 2022 let's go","images":[{"img":"https://static.tigerbbs.com/bd1bc99b618b62baf12f755cd46469d3","width":"1080","height":"1979"}],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/382537144","isVote":1,"tweetType":1,"viewCount":248,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":1,"langContent":"EN","totalScore":0},{"id":365405808,"gmtCreate":1614766793804,"gmtModify":1703480827491,"author":{"id":"3575021854974950","authorId":"3575021854974950","name":"Xiozinc","avatar":"https://static.tigerbbs.com/ed7e0a12b6d1563dcfbdccfcae177723","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3575021854974950","authorIdStr":"3575021854974950"},"themes":[],"htmlText":"<a href=\"https://laohu8.com/S/NIO\">$NIO Inc.(NIO)$</a>hold to the moon🚀🚀🚀","listText":"<a href=\"https://laohu8.com/S/NIO\">$NIO Inc.(NIO)$</a>hold to the moon🚀🚀🚀","text":"$NIO Inc.(NIO)$hold to the moon🚀🚀🚀","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/365405808","isVote":1,"tweetType":1,"viewCount":956,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":362033953,"gmtCreate":1614571492472,"gmtModify":1703478327923,"author":{"id":"3575021854974950","authorId":"3575021854974950","name":"Xiozinc","avatar":"https://static.tigerbbs.com/ed7e0a12b6d1563dcfbdccfcae177723","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3575021854974950","authorIdStr":"3575021854974950"},"themes":[],"htmlText":"🚀🚀🚀","listText":"🚀🚀🚀","text":"🚀🚀🚀","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/362033953","repostId":"1146313632","repostType":4,"repost":{"id":"1146313632","kind":"news","pubTimestamp":1614334339,"share":"https://www.laohu8.com/m/news/1146313632?lang=&edition=full","pubTime":"2021-02-26 18:12","market":"us","language":"en","title":"Gamestop And High Volatility Options","url":"https://stock-news.laohu8.com/highlight/detail?id=1146313632","media":"Options AI: Learn","summary":"Gamestop Corp. shares have soared the past few days with the stock up nearly 200% at one point from ","content":"<p><b>Gamestop Corp.</b>&nbsp;shares have soared the past few days with the stock up nearly 200% at one point from last week (but still down significantly from recent short squeeze highs). We'll look at the unique situations that arise in the options of a highly volatile stock like Gamestop and a few things that might be considered before trading options.</p><hr><p><b>Gamestop: The Expected Move</b></p><p>First, a look at how options are pricing upcoming moves. Here's theOptions AIexpected move chart for Gamestop, with a nearly 30% move being priced into this Friday's close. And a roughly 80% move being priced for the next month. A month that includes an earnings event (unconfirmed):</p><p><img src=\"https://static.tigerbbs.com/e35872724d8db887fa09d822d622ac8c\" tg-width=\"568\" tg-height=\"817\" referrerpolicy=\"no-referrer\"></p><p>Gamestop: Call Spreads vs Outright Calls</p><p>Using March 19th as an expiry we first looks at bullish spreads, and compare directly to outright calls. With a stock as volatile as Gamestop, calls can be expensive. Because of that, many traders resort to buying far out of the money calls. That demand for upside calls increases volatility in those calls, making them expensive relative to at-the-money calls – a phenomenon known as skew. However, for those that are bullish, this may create an opportunity to utilize spreads rather than buying an outright call. Let's see how.</p><p>Here we'll focus on one alternative – using debit spreads to lower the overall cost of a directional trade (while potentially improving the probability of profit of the trade itself by lowering the breakeven level). It does so by selling those relatively expensive out-the-money Calls to help finance the purchase of a nearer to at-the-money Call.</p><p>With Gamestop near $105, the&nbsp;<b>March 19th 110/190 Debit Call Spread</b>&nbsp;is roughly $15 and targets the bullish expected move for March 19th. The debit call spread would need the stock to be above $125 on March 19th to be profitable.</p><p>As a comparison, the GME March 19th 200 calls are trading $29. That's nearly twice the cost for a 200 call that needs the stock above $229 by March 19th… versus a call spread, that needs the stock above $125. Here's a side by side comparison of those two trades on the Options AI chart. First, the 200 call:</p><p><img src=\"https://static.tigerbbs.com/b044a22bfbe5a8326f9aa3ebf56ed4fd\" tg-width=\"570\" tg-height=\"740\" referrerpolicy=\"no-referrer\"></p><p>And next, the 145/200 debit call spread:</p><p><img src=\"https://static.tigerbbs.com/6cdf8545f07da48f770ef81cb4e5ac53\" tg-width=\"569\" tg-height=\"792\" referrerpolicy=\"no-referrer\"></p><p>As you can see, not only is the call spread less expensive, the point at which is becomes profitable to the upside is much closer to where the stock is currently trading. (As indicated by the grey price of the breakeven.)</p><p>A note on probability of profit. The probability of profit displayed on these trades is based on the delta being assigned to the breakeven of the trade. The fact that a 200 call in a $105 stock is trading near 50 deltas shows just how distorting an effect Gamestop volatility is having on its options (hard to borrow, skew, retail demand for out-of-the-money calls).</p><p>Directional Butterflies vs Outright Puts</p><p>High volatility also affects bearish options trades. One of the counter-intuitive aspects of a high volatility stock like Gamestop is that its implied volatility can go up as the stock goes higher and down as the stock goes lower. This is the opposite of how we generally think about volatility. Therefore, buying outright puts carries a risk of collapsing volatility (and therefore collapsing premiums) as the stock goes lower. So, even though the stock is moving in the intended direction, as an option holder you may not be realizing the gains expected.</p><p>One way to counter high implied volatility in a stock, especially when having a bearish view, is to be a net seller of option premium. To sell to bullish option traders rather than join bearish option traders. Traditionally that might take the form of selling a Credit Call Spread. But in GME's case that means buying the (expensive) upper strike Call at a higher volatility than the Call that is closer to the money (as described above).</p><p>So, one option strategy that can be considered by traders is using a Butterfly. An option trade that is more typically associated with a neutral trading view, but here adapted to actually create a targeted (bearish) directional view.</p><p>Here, as an example, is a Butterfly with its center strikes focused at $80 in the stock, with a March 19th expiry:</p><p><img src=\"https://static.tigerbbs.com/f7cb8f9b0570e854f662f3031e50ca91\" tg-width=\"573\" tg-height=\"740\" referrerpolicy=\"no-referrer\"></p><p>This 130/80/30 butterfly has breakevens of 115 and 45, meaning the trade is profitable if the stock is between those two prices at March 19th expiry… with a max gain occurring if the stock is at or near $80. It has the additional dynamic of being short premium, and if the stock stays within its range would see mark to market gains if implied volatility compressed.</p>","source":"lsy1614334070724","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Gamestop And High Volatility Options</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nGamestop And High Volatility Options\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-02-26 18:12 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://learn.optionsai.com/gamestop-and-high-volatility-options/><strong>Options AI: Learn</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Gamestop Corp. shares have soared the past few days with the stock up nearly 200% at one point from last week (but still down significantly from recent short squeeze highs). We'll look at the unique ...</p>\n\n<a href=\"https://learn.optionsai.com/gamestop-and-high-volatility-options/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"GME":"游戏驿站"},"source_url":"https://learn.optionsai.com/gamestop-and-high-volatility-options/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1146313632","content_text":"Gamestop Corp. shares have soared the past few days with the stock up nearly 200% at one point from last week (but still down significantly from recent short squeeze highs). We'll look at the unique situations that arise in the options of a highly volatile stock like Gamestop and a few things that might be considered before trading options.Gamestop: The Expected MoveFirst, a look at how options are pricing upcoming moves. Here's theOptions AIexpected move chart for Gamestop, with a nearly 30% move being priced into this Friday's close. And a roughly 80% move being priced for the next month. A month that includes an earnings event (unconfirmed):Gamestop: Call Spreads vs Outright CallsUsing March 19th as an expiry we first looks at bullish spreads, and compare directly to outright calls. With a stock as volatile as Gamestop, calls can be expensive. Because of that, many traders resort to buying far out of the money calls. That demand for upside calls increases volatility in those calls, making them expensive relative to at-the-money calls – a phenomenon known as skew. However, for those that are bullish, this may create an opportunity to utilize spreads rather than buying an outright call. Let's see how.Here we'll focus on one alternative – using debit spreads to lower the overall cost of a directional trade (while potentially improving the probability of profit of the trade itself by lowering the breakeven level). It does so by selling those relatively expensive out-the-money Calls to help finance the purchase of a nearer to at-the-money Call.With Gamestop near $105, the March 19th 110/190 Debit Call Spread is roughly $15 and targets the bullish expected move for March 19th. The debit call spread would need the stock to be above $125 on March 19th to be profitable.As a comparison, the GME March 19th 200 calls are trading $29. That's nearly twice the cost for a 200 call that needs the stock above $229 by March 19th… versus a call spread, that needs the stock above $125. Here's a side by side comparison of those two trades on the Options AI chart. First, the 200 call:And next, the 145/200 debit call spread:As you can see, not only is the call spread less expensive, the point at which is becomes profitable to the upside is much closer to where the stock is currently trading. (As indicated by the grey price of the breakeven.)A note on probability of profit. The probability of profit displayed on these trades is based on the delta being assigned to the breakeven of the trade. The fact that a 200 call in a $105 stock is trading near 50 deltas shows just how distorting an effect Gamestop volatility is having on its options (hard to borrow, skew, retail demand for out-of-the-money calls).Directional Butterflies vs Outright PutsHigh volatility also affects bearish options trades. One of the counter-intuitive aspects of a high volatility stock like Gamestop is that its implied volatility can go up as the stock goes higher and down as the stock goes lower. This is the opposite of how we generally think about volatility. Therefore, buying outright puts carries a risk of collapsing volatility (and therefore collapsing premiums) as the stock goes lower. So, even though the stock is moving in the intended direction, as an option holder you may not be realizing the gains expected.One way to counter high implied volatility in a stock, especially when having a bearish view, is to be a net seller of option premium. To sell to bullish option traders rather than join bearish option traders. Traditionally that might take the form of selling a Credit Call Spread. But in GME's case that means buying the (expensive) upper strike Call at a higher volatility than the Call that is closer to the money (as described above).So, one option strategy that can be considered by traders is using a Butterfly. An option trade that is more typically associated with a neutral trading view, but here adapted to actually create a targeted (bearish) directional view.Here, as an example, is a Butterfly with its center strikes focused at $80 in the stock, with a March 19th expiry:This 130/80/30 butterfly has breakevens of 115 and 45, meaning the trade is profitable if the stock is between those two prices at March 19th expiry… with a max gain occurring if the stock is at or near $80. It has the additional dynamic of being short premium, and if the stock stays within its range would see mark to market gains if implied volatility compressed.","news_type":1,"symbols_score_info":{"GME":0.9}},"isVote":1,"tweetType":1,"viewCount":932,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":368445599,"gmtCreate":1614350667811,"gmtModify":1703476767610,"author":{"id":"3575021854974950","authorId":"3575021854974950","name":"Xiozinc","avatar":"https://static.tigerbbs.com/ed7e0a12b6d1563dcfbdccfcae177723","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3575021854974950","authorIdStr":"3575021854974950"},"themes":[],"htmlText":"Moon mode!!!&nbsp;🚀🚀","listText":"Moon mode!!!&nbsp;🚀🚀","text":"Moon mode!!! 🚀🚀","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/368445599","repostId":"1146313632","repostType":4,"repost":{"id":"1146313632","kind":"news","pubTimestamp":1614334339,"share":"https://www.laohu8.com/m/news/1146313632?lang=&edition=full","pubTime":"2021-02-26 18:12","market":"us","language":"en","title":"Gamestop And High Volatility Options","url":"https://stock-news.laohu8.com/highlight/detail?id=1146313632","media":"Options AI: Learn","summary":"Gamestop Corp. shares have soared the past few days with the stock up nearly 200% at one point from ","content":"<p><b>Gamestop Corp.</b>&nbsp;shares have soared the past few days with the stock up nearly 200% at one point from last week (but still down significantly from recent short squeeze highs). We'll look at the unique situations that arise in the options of a highly volatile stock like Gamestop and a few things that might be considered before trading options.</p><hr><p><b>Gamestop: The Expected Move</b></p><p>First, a look at how options are pricing upcoming moves. Here's theOptions AIexpected move chart for Gamestop, with a nearly 30% move being priced into this Friday's close. And a roughly 80% move being priced for the next month. A month that includes an earnings event (unconfirmed):</p><p><img src=\"https://static.tigerbbs.com/e35872724d8db887fa09d822d622ac8c\" tg-width=\"568\" tg-height=\"817\" referrerpolicy=\"no-referrer\"></p><p>Gamestop: Call Spreads vs Outright Calls</p><p>Using March 19th as an expiry we first looks at bullish spreads, and compare directly to outright calls. With a stock as volatile as Gamestop, calls can be expensive. Because of that, many traders resort to buying far out of the money calls. That demand for upside calls increases volatility in those calls, making them expensive relative to at-the-money calls – a phenomenon known as skew. However, for those that are bullish, this may create an opportunity to utilize spreads rather than buying an outright call. Let's see how.</p><p>Here we'll focus on one alternative – using debit spreads to lower the overall cost of a directional trade (while potentially improving the probability of profit of the trade itself by lowering the breakeven level). It does so by selling those relatively expensive out-the-money Calls to help finance the purchase of a nearer to at-the-money Call.</p><p>With Gamestop near $105, the&nbsp;<b>March 19th 110/190 Debit Call Spread</b>&nbsp;is roughly $15 and targets the bullish expected move for March 19th. The debit call spread would need the stock to be above $125 on March 19th to be profitable.</p><p>As a comparison, the GME March 19th 200 calls are trading $29. That's nearly twice the cost for a 200 call that needs the stock above $229 by March 19th… versus a call spread, that needs the stock above $125. Here's a side by side comparison of those two trades on the Options AI chart. First, the 200 call:</p><p><img src=\"https://static.tigerbbs.com/b044a22bfbe5a8326f9aa3ebf56ed4fd\" tg-width=\"570\" tg-height=\"740\" referrerpolicy=\"no-referrer\"></p><p>And next, the 145/200 debit call spread:</p><p><img src=\"https://static.tigerbbs.com/6cdf8545f07da48f770ef81cb4e5ac53\" tg-width=\"569\" tg-height=\"792\" referrerpolicy=\"no-referrer\"></p><p>As you can see, not only is the call spread less expensive, the point at which is becomes profitable to the upside is much closer to where the stock is currently trading. (As indicated by the grey price of the breakeven.)</p><p>A note on probability of profit. The probability of profit displayed on these trades is based on the delta being assigned to the breakeven of the trade. The fact that a 200 call in a $105 stock is trading near 50 deltas shows just how distorting an effect Gamestop volatility is having on its options (hard to borrow, skew, retail demand for out-of-the-money calls).</p><p>Directional Butterflies vs Outright Puts</p><p>High volatility also affects bearish options trades. One of the counter-intuitive aspects of a high volatility stock like Gamestop is that its implied volatility can go up as the stock goes higher and down as the stock goes lower. This is the opposite of how we generally think about volatility. Therefore, buying outright puts carries a risk of collapsing volatility (and therefore collapsing premiums) as the stock goes lower. So, even though the stock is moving in the intended direction, as an option holder you may not be realizing the gains expected.</p><p>One way to counter high implied volatility in a stock, especially when having a bearish view, is to be a net seller of option premium. To sell to bullish option traders rather than join bearish option traders. Traditionally that might take the form of selling a Credit Call Spread. But in GME's case that means buying the (expensive) upper strike Call at a higher volatility than the Call that is closer to the money (as described above).</p><p>So, one option strategy that can be considered by traders is using a Butterfly. An option trade that is more typically associated with a neutral trading view, but here adapted to actually create a targeted (bearish) directional view.</p><p>Here, as an example, is a Butterfly with its center strikes focused at $80 in the stock, with a March 19th expiry:</p><p><img src=\"https://static.tigerbbs.com/f7cb8f9b0570e854f662f3031e50ca91\" tg-width=\"573\" tg-height=\"740\" referrerpolicy=\"no-referrer\"></p><p>This 130/80/30 butterfly has breakevens of 115 and 45, meaning the trade is profitable if the stock is between those two prices at March 19th expiry… with a max gain occurring if the stock is at or near $80. It has the additional dynamic of being short premium, and if the stock stays within its range would see mark to market gains if implied volatility compressed.</p>","source":"lsy1614334070724","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Gamestop And High Volatility Options</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nGamestop And High Volatility Options\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-02-26 18:12 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://learn.optionsai.com/gamestop-and-high-volatility-options/><strong>Options AI: Learn</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Gamestop Corp. shares have soared the past few days with the stock up nearly 200% at one point from last week (but still down significantly from recent short squeeze highs). We'll look at the unique ...</p>\n\n<a href=\"https://learn.optionsai.com/gamestop-and-high-volatility-options/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"GME":"游戏驿站"},"source_url":"https://learn.optionsai.com/gamestop-and-high-volatility-options/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1146313632","content_text":"Gamestop Corp. shares have soared the past few days with the stock up nearly 200% at one point from last week (but still down significantly from recent short squeeze highs). We'll look at the unique situations that arise in the options of a highly volatile stock like Gamestop and a few things that might be considered before trading options.Gamestop: The Expected MoveFirst, a look at how options are pricing upcoming moves. Here's theOptions AIexpected move chart for Gamestop, with a nearly 30% move being priced into this Friday's close. And a roughly 80% move being priced for the next month. A month that includes an earnings event (unconfirmed):Gamestop: Call Spreads vs Outright CallsUsing March 19th as an expiry we first looks at bullish spreads, and compare directly to outright calls. With a stock as volatile as Gamestop, calls can be expensive. Because of that, many traders resort to buying far out of the money calls. That demand for upside calls increases volatility in those calls, making them expensive relative to at-the-money calls – a phenomenon known as skew. However, for those that are bullish, this may create an opportunity to utilize spreads rather than buying an outright call. Let's see how.Here we'll focus on one alternative – using debit spreads to lower the overall cost of a directional trade (while potentially improving the probability of profit of the trade itself by lowering the breakeven level). It does so by selling those relatively expensive out-the-money Calls to help finance the purchase of a nearer to at-the-money Call.With Gamestop near $105, the March 19th 110/190 Debit Call Spread is roughly $15 and targets the bullish expected move for March 19th. The debit call spread would need the stock to be above $125 on March 19th to be profitable.As a comparison, the GME March 19th 200 calls are trading $29. That's nearly twice the cost for a 200 call that needs the stock above $229 by March 19th… versus a call spread, that needs the stock above $125. Here's a side by side comparison of those two trades on the Options AI chart. First, the 200 call:And next, the 145/200 debit call spread:As you can see, not only is the call spread less expensive, the point at which is becomes profitable to the upside is much closer to where the stock is currently trading. (As indicated by the grey price of the breakeven.)A note on probability of profit. The probability of profit displayed on these trades is based on the delta being assigned to the breakeven of the trade. The fact that a 200 call in a $105 stock is trading near 50 deltas shows just how distorting an effect Gamestop volatility is having on its options (hard to borrow, skew, retail demand for out-of-the-money calls).Directional Butterflies vs Outright PutsHigh volatility also affects bearish options trades. One of the counter-intuitive aspects of a high volatility stock like Gamestop is that its implied volatility can go up as the stock goes higher and down as the stock goes lower. This is the opposite of how we generally think about volatility. Therefore, buying outright puts carries a risk of collapsing volatility (and therefore collapsing premiums) as the stock goes lower. So, even though the stock is moving in the intended direction, as an option holder you may not be realizing the gains expected.One way to counter high implied volatility in a stock, especially when having a bearish view, is to be a net seller of option premium. To sell to bullish option traders rather than join bearish option traders. Traditionally that might take the form of selling a Credit Call Spread. But in GME's case that means buying the (expensive) upper strike Call at a higher volatility than the Call that is closer to the money (as described above).So, one option strategy that can be considered by traders is using a Butterfly. An option trade that is more typically associated with a neutral trading view, but here adapted to actually create a targeted (bearish) directional view.Here, as an example, is a Butterfly with its center strikes focused at $80 in the stock, with a March 19th expiry:This 130/80/30 butterfly has breakevens of 115 and 45, meaning the trade is profitable if the stock is between those two prices at March 19th expiry… with a max gain occurring if the stock is at or near $80. It has the additional dynamic of being short premium, and if the stock stays within its range would see mark to market gains if implied volatility compressed.","news_type":1,"symbols_score_info":{"GME":0.9}},"isVote":1,"tweetType":1,"viewCount":1250,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":368950317,"gmtCreate":1614275489439,"gmtModify":1703475767082,"author":{"id":"3575021854974950","authorId":"3575021854974950","name":"Xiozinc","avatar":"https://static.tigerbbs.com/ed7e0a12b6d1563dcfbdccfcae177723","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3575021854974950","authorIdStr":"3575021854974950"},"themes":[],"htmlText":"Round 2 baby to the moon!! Break 190 resistance today!?!","listText":"Round 2 baby to the moon!! Break 190 resistance today!?!","text":"Round 2 baby to the moon!! Break 190 resistance today!?!","images":[{"img":"https://static.tigerbbs.com/1b1c3fd5a38d5bece38c082442a2a9c7","width":"1080","height":"2622"}],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/368950317","isVote":1,"tweetType":1,"viewCount":996,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":1,"langContent":"EN","totalScore":0}],"lives":[]}