Here’s the best explanation we have as to why Opendoor crashed suddenly
Opendoor Technologies There are age sessions. Stocks, which rose nearly 120% during their peak, stopped due to volatility just after 3pm ET after cutting half of those profits in minutes. The stock has been volatile after resuming trading, increasing by about 30% as of 3:38pm.
(First of all, it’s insane that inventory, which increased by more than 50% during the day and increased by about 1 billion% in the following weeks, has stopped due to negative side volatility.)
Keeping in mind that no one knows anything, at least more than anything, here’s what happened to be prevented from halting Opendoor’s shares:
The 5-minute stretch, near 3pm, was the most motivated sale at the Opendoor all day. Each Bloomberg data generated approximately 42% of the volume traded on the bid side. This bid is the highest price the buyer is willing to pay, and the question is the lowest price the seller is going to accept (and higher than the bid), so looking at the activity in the bid refers to a motivated sale. In this case, it probably refers to profitable names that run ridiculously violently and ridiculously fast.
It’s no surprise that breaching $4.50 caused a loss in stock to Crescendo.
We’ve been talking about Gunmask Ease today, and I especially emphasized the $4.50 strike as important. To date, there was no open interest in the contract. This will definitely be the most important point for stocks.
If the options are in the money, gamma is the best. Closing profits on these highly profitable bets means the same dynamics that have been pushing higher inventory on recent sessions.
