ABUS' decline

This may seem like a silly one due to the most recent price action, but: ABUS has developed into a gamma squeeze (net delta: -3,648), but what is most interesting is the distribution of options on ABUS has left it highly vulnerable to IV. Below is the hedging matrix and options layout for ABUS: https://i.imgur.com/6IZRsUh.png And interestingly, despite the reduction in extreme price, ABUS' IV has been rising steadily: https://i.imgur.com/VWQ7M9O.png Combining the delta-hedging requirements that are tied directly to volatility currently, and the normal decrease the follows such a drastic jump (usually), it is safe to bet on continued downside. This was all brought to my attention due to VoEx's behavior, which also signal continued downside: https://i.imgur.com/Zg1edI9.png

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ABUS' decline

bearish

This may seem like a silly one due to the most recent price action, but:

ABUS has developed into a gamma squeeze (net delta: -3,648), but what is most interesting is the distribution of options on ABUS has left it highly vulnerable to IV. Below is the hedging matrix and options layout for ABUS:



And interestingly, despite the reduction in extreme price, ABUS' IV has been rising steadily:



Combining the delta-hedging requirements that are tied directly to volatility currently, and the normal decrease the follows such a drastic jump (usually), it is safe to bet on continued downside.

This was all brought to my attention due to VoEx's behavior, which also signal continued downside:



 

 

 

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read-time
1 min

3.52

Target Price

8/ 10

Confidence

1-2 Weeks

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