The 90% spike that proved everything

Hey, it's Brandon Chapman here.

OpenDoor (OPEN) shot up 90% today.

Then crashed 50% in minutes.

GameStop flashbacks? You bet.

The same "diamond hands" mentality is back. The same "this time it's different" thinking. Even the same margin debt levels we saw in 2020.

But here's what everyone's missing...

This isn't original thinking. It's a replay. And I've seen this movie before.

Open Door traded 3 times its entire float today. Some of these meme stocks are trading 10 times their float.

When you start seeing those numbers, you're reaching critical mass.

The reality is this: retail traders buy at market and sell at market. And when they lose confidence? They'll sell at any price.

Two things I'm tracking that most people are completely blind to:

• The specific float-to-volume ratio that signals when these squeezes are about to reverse (Open Door hit it today)

• How I'm using options to capture upside in these volatile names while controlling the downside risk most people ignore

Look, I'm not saying don't participate. I dabbled in SPCE today myself. Got out when the technicals told me to.

But if you're finding yourself drifting toward that "this can't go on forever" feeling... trust it.

Because guess what? It can't.

I remember writing about this same "new paradigm" thinking in 1999 as an economics major. Professors saying earnings don't matter. Sound familiar?

The squeeze only lasts for a very short period. Virgin Galactic touched $66, then crashed to $26 within a month. RGTI went from $21 to $6.

If the market makes a 5% pullback, you're going to see 20-30% declines in these names. Or more.

Watch this today's breakdown where I show you the Ghost Prints methodology I use to identify potential moves before they happen - and how to trade these volatile stocks using options instead of risking your principal on hope.

Because the reality is... 99% of people aren't going to pick the right stocks and get out at the exact right time.

Don't be part of the 99%.

WATCH THE FULL MARKET BREAKDOWN

The reality is this is only a replay of something we've seen time and time again.

Brandon Chapman

P.S. - When I see stocks trading 10 times their float and margin debt at 2020 levels... that's not bullish. That's a warning.

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The 90% spike that proved everything

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