A friend asked me what was going on with the positions in $UAI over the past couple of days, so I casually said a few things:
“The price dropped 23.98% in 24 hours, while open interest actually rose 62.49%. Usually, that means short sellers are pushing the price down; but if the shorts get too crowded, you also have to watch out for a rebound.”
Then he asked how to trade it. I said I didn’t know either—I usually just watch and wait to see how the price moves before deciding.
“The price dropped 23.98% in 24 hours, while open interest actually rose 62.49%. Usually, that means short sellers are pushing the price down; but if the shorts get too crowded, you also have to watch out for a rebound.”
Then he asked how to trade it. I said I didn’t know either—I usually just watch and wait to see how the price moves before deciding.
