The next place where we might look to short this mania-powered gas-bag would be at the 421.40 target shown, although we should be open to the possibility of a stall, or perhaps even a tradable top, near the 404.45 midpoint pivot. First off, though, and to provide a wider cushion for an eventual short, we’ll try to get long by legging into the 415-420-425 call butterfly expiring June 6. Today only, with the stock trading 401 or higher, try to buy the 415-420 spread 1:1 for 1.20 or less. If the stock is trading between 399 and 401, lower the spread bid to 1.00. This is a day order. ______ UPDATE (11:24 a.m. ET): The 415-420 spread opened for a very pricey 1.35 with the stock in the throes of a head-fake that proved fleeting, so we did nothing. The spread is currently available for around 1.05, but that is no bargain with the underlying stock presently trading near 394. _______ UPDATE (8:42 p.m.): We’ll wait for a better opportunity, so stay tuned. _______ UPDATE (May 30, 12:42 p.m. ET): This one has worked out nearly perfectly. The stock peaked today just 34 cents above the 421.40 target I advertised when it was trading around 398. It has since collapsed to 414, meaning there was a $700 profit per round lot to be had. If you shorted this ‘gas-bag’ as suggested, cover half the position now. It still looks like the best short available for betting on a stock-market collapse.
