RMBS short or long?

H

hedgeyourbets

RMBS seem to be getting out of control here at 34...
Close to 4 bil market cap... 150 mil in revenues...
People seem to bet that RMBS will get some serious money from a Korean company in out of court settlement...
I say we are not going any higher... What do you think?
 
I just put in an order for the August 40 puts. I think this stock is going back to 20.

The fundamentals don't support a move like this (the settlement isn't even worth this much), and I expect the fundamentals to play out-that's why I am buying 8 months of time.
 
I've been watching RMBS with quite a bit of suprise the past few trading days, stock has basically been going vertical.
 
Quote from Triple X:

This was a high flyer back in 2000. It could go much higher.
More...

Yeah, the key is "back in 2000" :)
A lot of them "were"...
I doubt there is a reason for RMBS to fly much higher than this.
I sold some Jan 40 calls if you're wondering...
 
Quote from hedgeyourbets:

Yeah, the key is "back in 2000" :)
A lot of them "were"...
I doubt there is a reason for RMBS to fly much higher than this.
I sold some Jan 40 calls if you're wondering...
More...

Why sell calls vs. buying puts? On this stock, i really think it's wise to limit your risk...if any positive news comes out on this stock it's going run harder (and ill sell more puts:D )

Im quite confident, however, that this stock will see $25-27 from now until august...i won't try to time it.
 
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