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