First let's look at how the GME craze evolves, in which those chasing and FOMO are always the ones being slaughtered.
While the chart is the current GME price movements in the past few weeks, it can be generalized to all the bubbles with the same chasing and slaughtered process intertwined. What is amazing is that it seems those being slaughtered will never learn the lesson. They will simply lick their wounds and then repeat the whole chasing and slaughtered cycle again after their blood is dried! Simply unbelievable!!😵
As I wrote yesterday, we are witnessing another round of chasing right now and it appears likely the top of this round of hounding may have already been reached. Are we seeing the start of the current round of butchering? I believe it is very likely😭
Due to the extreme volatility associated with GME price movements, its option premium is astonishingly rich, which is a great music to savvy traders. For example, I placed two types of option trading yesterday: One was to short GME via its out of the money calls in a couple of weeks. It is already working in my favour today. I also placed a put selling overnight trade, taking advantage of the extreme rich put premium. I couldn't believe what I saw yesterday. When GEM was trading around $150, its next day (today) $55 put premium was over $15! Based on its charting trend, I was convinced that GME would not crash down to below $55 overnight. So it was an overnight income trade too good to pass. Sure enough, it was easy money to be made by selling its puts. One can easily make a few thousands or tens of thousands overnight!🤑
I wish this kind of cycle would continue with those high volatility junk stocks like GME. Of course, I hope you are not one of those FOMO that tend to buy high and sell low😢
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