Some rich people think Celsius Holdings's price will go down, so they are buying things called options that let them sell the stock later at a certain price. This makes it look like the price might go down. But some other smart people still think the price will go up, and they are also buying options to bet on that. They all watch the news and try to guess what will happen with Celsius Holdings's price. Read from source...
- The title is misleading and exaggerated. A closer look should imply a comprehensive and objective analysis, not just an overview of some options trades.
The sentiment of the article is predominantly bearish.
1. Buy Celsius Holdings' puts with a strike price between $50 and $80, as the whales are betting on a significant price drop in the near future. This strategy can yield high profits if the stock falls below the strike price before expiration. However, it also involves a higher risk of loss if the stock rises or remains stable.
2. Sell Celsius Holdings' calls with a strike price between $50 and $80, as the whales are creating a supply pressure in this range. This strategy can generate income if the stock does not reach the strike price before expiration. However, it also exposes the investor to a potential loss if the stock rallies or the implied volatility increases.
3. Diversify the portfolio by investing in other sectors or assets that are uncorrelated with Celsius Holdings' performance. This can help reduce the overall risk and increase the Sharpe ratio of the portfolio. For example, gold, bonds, or foreign currencies may offer attractive opportunities for diversification.