To The Moon

Cathie Wood's fourth largest holding -$Teladoc Health Inc.(TDOC)$ slumped 36%after-hours trading.It was no surprise.

TDOC's option IV due this week has exceeded 250%, which is absolutely going to big swings, but I don't know whether up or down.

Before the result, the CALL/PUT ratio of TDOC reached 0.64, that means the amount of PUT options far exceeded CALL options.

In the option volume, you can see a large number of CALL bets on $60-61, but PUT is outrageous, which almost bets on $35 and $40. The $40 PUT due this week sold more than 2,000 contracts last night.​The most outrageous thing is that there is no liquidity in TDOC options due next week. But the $35 PUT option highlighted 2,000 transactions last night. Isn't someone knowing in advance what the result is?​I did not trade TDOC's options, because I don't understand its business anymore and haven't touched it before.

Recently, many people have asked if there is any stock to short. I don't want to short stocks directly. I usually buy PUT. The reason is that PUT is to hedge my long position, and the cost of PUT is controllable, so I will lose premium at most. If I short stock, it will be very uncomfortable to lose when the market rises.

$ARK Innovation ETF(ARKK)$Seems to be a good choice who have fallen off the altar, anyway, I PUT it.

First, ARKK's holdings are all representatives of beta stocks that are likely more tremors. However, it is slightly more difficult to pick stocks one by one and cram temporarily.

Second, ARKK's options are much more active than its holdings. There are too many people betting on ARKK's put options. The Options' IV has been at a high level of over 80%.

If we look at the option chains due on May 20th, the positions are mostly concentrated on the PUT side, and CALL does not have any single contract with thousands or over ten thousand volumes. The biggest volume of CALL at $45 with an open position close to 4000. But Put options are much larger than that.​If we see monthly contract in June, you can find there is sparse call options ,but the amount of PUT is amazing.​

Recently, the market is fluctuate greatly. Everyone fastened your seat belts in the market. I hope today's content will be helpful to you.