Discussion in 'Stocks' started by AAAintheBeltway, Apr 20, 2006.
lost 30% in a few minutes.
Rambus-RMBS appears drop is a False Alarm, no verdict yet in Hynix case-Rumor
Shares dropped dramatically from $44.50 to as low as $29.70 and have since recovered to $40.00 on unconfirmed chatter of negative ruling in the Hynix patent litigation case. The Jury has been in deliberations and there are expectations that a verdict could occur this week. :theflyonthewall.com
14:52 EDT RMBS theflyonthewall.com: Rambus-RMBS April option prices exploding and collapsing as Stock sells off
RMBS down 8.73 to $38.11. RMBS and Hynix trial concluded last week, the jury is expected to reach an outcome soon. RMBS May option implied volatility of 121 is above its 26-week average of 79. RMBS April at the money straddle is priced at $6.90 cents, above its theoretical value of $2.08. Aggressive price action in RMBS options indicates high risk. :theflyonthewall
This is why I haven't touched RMBS during its run upwards, I felt that the risk was far too high.
take a look @ IV chart for last 3 months. that why i'm staying away from it too. i don't know, what's cooking, but IV tell you, that this thing can blow either way any minute.
RMBS is a $5 stock. Why did not you say WTF when it went up $10 in 5 days for no reason? . Downturn just started. 2 cents profit company is not worth $40.
Let's see. Start a negative rumor, jump on the stock when low, sell when the rumor is denied on the pop.
Just wondering if the rumor could have been intentional or orchestated.
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