A friend asked me what was going on with the position in $KAVA over the past couple of days. I gave him a quick explanation:
“The price is down 61.49% in 24 hours, but open interest is up 94.01%. It’s probably shorts pushing the price down; but if the short side gets too crowded, you also have to watch out for a short squeeze.”
He then asked what he should do. I said I really couldn’t say for sure. I usually wait and see, then decide once the market makes a move.
It’s your money—think it through before you act.
“The price is down 61.49% in 24 hours, but open interest is up 94.01%. It’s probably shorts pushing the price down; but if the short side gets too crowded, you also have to watch out for a short squeeze.”
He then asked what he should do. I said I really couldn’t say for sure. I usually wait and see, then decide once the market makes a move.
It’s your money—think it through before you act.
