I have a call position in CELH for Oct 18 that I’ve averaged into over the last month. As we know, Celsius Holdings has gotten clobbered in the last 24 hours. However, I’m surprised to see that my position has gained over 200% since then.
Is this purely due to spiking extrinsic value from volatility? I know of IV crush, but I’ve never heard of an IV pump. Or is this due to something else entirely?
Call way up but the stock is way down?
byu/sausage_phest2 inoptions
Posted by sausage_phest2
2 Comments
Do they have some sort of news or earnings ? Yes it is called iv pump usually due to event coming up or an event just happened. People usually sell into the pump. You shoukd strongly consider it
You said yourself they got clobbered, that means relative IV is up. So yep you got reverse crushed, congrats!
Edit: take profits, IMO I would just close the winner and wait for the dust to settle before reentry.