Early today, shares of Virgin Galactic (SPCE) continued their rocket rise.
The SPCE April $20 call option I recommended to subscribers (see yesterday’s blog post and the 02-09-20 Options Hotline) for $2.50 reached a value of $18.72 today, +649% in a little over a week.
But markets don’t move in one direction. Even though shares were up from Friday, the character of today’s price movement is actually negative. See my chart above for today’s black candle line with an upper shadow. That shows price falling from the high of the day and implies the likelihood of a coming move lower to levels of underlying support (demand).
It’s important to remember the law of gravity applies to markets.
If buyers are exhausted from a hyperbolic rise, SPCE will get burned on re-entry.
A wild ride, indeed.