RMBS short or long?

Discussion in 'Stocks' started by hedgeyourbets, Jan 11, 2006.

  1. 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?
  2. 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.
  3. Chagi


    I've been watching RMBS with quite a bit of suprise the past few trading days, stock has basically been going vertical.
  4. This was a high flyer back in 2000. It could go much higher.
  5. It's not 2000.

    I bought a ton of time so when the market tanks, this thing will go down faster.
  6. 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...
  7. 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.