Over in the lunatic asylum of /WSB, there was a guy who decided to plow virtually the entirely of his account into, shall we say, a risky bet.
Specifically, he bought about $100,000 of out-of-the-money AMZN puts that expire next Friday. I know, right?
I am already short a rather big chunk of AMZN, so this guy was kind of my hero, as insane as he was acting. Indeed, looking at AMZN, it is one of the few NASDAQ stocks that looks extremely dangerous. Hell, it even managed to close lower on Friday, with the Dow at a record 28,000 and almost all equity indexes at highs never seen before in history.
Looking at our super-cool IV Rank chart, it’s also clear that volatility on AMZN puts has nowhere to go but “up” at this point.
So it was kind of sad on Friday to see our hero throw in the towel and give up on his crazy YOLO play.
If by some miracle AMZN slips below 1697 before next week is over, I suspect this guy might re-appear to pull his hair out. But we’ll cross that bridge if we get to it.
