Knowing future crashes
Heres how to know when a stock will crash.
Hedge funds create a weak spot for a stock thats getting a lot of attention. They make sure they are always in control. Now you can read how exercising options doesnt affect stock movement but that is a lie. But they base it on how stocks used to work and even tho they still had an effect it was miniscule due to market factors that no longer exist. One factor was option contracts werent very popular until recently. Not enough were sold to cause any reaction with a stock with millions of shares. Another is option strikes and contracts were considered infinite. I knew brokers who actually thought this. But option contracts are exercisable, where you receive the shares instead of the payout. It just was never done. The only time it did happen is when you didnt put in for the payout then they automatically were exercised and the shares would be in your account that monday minus the fees or you got margin called. Option contracts also didnt have half dollar strikes and once you got over 20.00 then it was only 5.00 strike distances allowed. Under 20.00 were 1.00 strike distances. And no option contracts were allowed for stocks below 5.00, which is why 5.00 and below stocks were nicknamed penny stocks. Now the whole system is a free for all because thats how you take control of movement. The volume now in options has a huge affect on pullbacks and thats why they created half dollar strikes. The more pauses and pullbacks you can cause the more chances there are to scare people into selling.
Hedge funds create a weak spot for a stock thats getting a lot of attention. They make sure they are always in control. Now you can read how exercising options doesnt affect stock movement but that is a lie. But they base it on how stocks used to work and even tho they still had an effect it was miniscule due to market factors that no longer exist. One factor was option contracts werent very popular until recently. Not enough were sold to cause any reaction with a stock with millions of shares. Another is option strikes and contracts were considered infinite. I knew brokers who actually thought this. But option contracts are exercisable, where you receive the shares instead of the payout. It just was never done. The only time it did happen is when you didnt put in for the payout then they automatically were exercised and the shares would be in your account that monday minus the fees or you got margin called. Option contracts also didnt have half dollar strikes and once you got over 20.00 then it was only 5.00 strike distances allowed. Under 20.00 were 1.00 strike distances. And no option contracts were allowed for stocks below 5.00, which is why 5.00 and below stocks were nicknamed penny stocks. Now the whole system is a free for all because thats how you take control of movement. The volume now in options has a huge affect on pullbacks and thats why they created half dollar strikes. The more pauses and pullbacks you can cause the more chances there are to scare people into selling.
This is $Progenity(PROG.US$ from today. Where is the only weakness in the entire option contracts? At the 5.50. How do they do that? Make the premiums at this strike the least worthy. The only way to get past this 5.50 spot and continue up is for the stock to open above the 7.50 strike. But they have ways to make sure that doesnt happen also. And they make sure people will exercise their options at 5.00 and below by the time values affect on the intrinsic value. So if they try to hold their option contracts they start to lose value.
And thats how i know when and where a stock will crash.
And thats how i know when and where a stock will crash.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment
Cat army : That's really insightful sir. But how do you see weakness at 5.5 from this
Mcsnacks H TupackOP Cat army: It’s the smallest number of open interest. It’s wherever there’s a smaller number than the rest. That’s going to be your weakness and where it stalls.
Mcsnacks H TupackOP Cat army: It’s a pattern I see. Others may not be able to see it but I can just look at all the numbers and know where the weakness will be. It’s not easy to do.
huahuajie : Thanks Master!
Allium tuberosum : learnt another new thing today
Cat army Mcsnacks H TupackOP: Thanks sir! I do see the 4.5 strike and below having similar open interest. So is that still significant for 5.5 strike to have that
Wallace Lai : You keep saying they have ways, they have ways.. Just call it out man, its dark pool and naked short
lucky hold : stop spreading fake news. none of your analysis is true.none.
Cat army Dennis Takizawa Hide: Gotcha! Means 5.5 will be the barrier
Cat army lucky hold: Lol he is presenting data from a legit source - nothing "blind" here
View more comments...