Lon Walters's avatar
$3.7m follower assets
Buying the dip. Let’s see what happens.
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Lon WaltersOctober 11
Nathan Worden's avatar
Looks like @petepaleo and @tc26 have bought and sold PagSeguro Digital recently. Would love to hear some more thoughts from people trading this name. The Nov 19, 2021 $55.00 Put had some of the highest implied volatility of all equity options today. Are people watching the options action on $PAGS or is it something more fundamental?
Alejandro Rodriguez's avatar
Not super familiar with options. What is "implied volatility", and why does it matter?
Nathan Worden's avatar
@alejandro_r Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could mean there is an event coming up soon that may cause a big rally or a huge sell-off.
Alejandro Rodriguez's avatar
Thanks @nathanworden

@lwalters is there a big event coming up for PagSeguro that might move it one way or another? I see their earnings announcement isn't until Nov. 17th.
Lon Walters's avatar
@lwaltersOctober 12
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@alejandro_r I’m not aware of any big event. Some analysts are targeting $68 on this one so I felt like it was worth taking a shot since it was down around its 52 week low.
Peter Paleokrassas's avatar
@nathanworden Im just trading for the bounce. Weak hands if stays heavy. Seems that Brazil Central Bank proposed a cap on interchange fees for pre-paid cards.
Nathan Worden's avatar
Nothing wrong with that @petepaleo@captain and @tecantra have been great explaining/trading on technicals lately.

I'm loving the conversations between people doing technical, fundamentals, and macroeconomic analysis.
Michael Panebianco's avatar
@nathanworden $PAGS is an interesting one. It's difficult to say as we're only 3 hours into the trading session but based on both the volume (same volume of all of yesterday) and the way the price has moved today, a lot of people think we're near the bottom of the decline.

Put IV is nuts right now but today's price action is a stronger signal for me; big enough for me to watch it, not take a position yet though! If we close above yesterday's close then I might be tempted.
Peter Paleokrassas's avatar
@tecantra agreed, volume is great. Mine more day trades, def need at least a good close to consider swinging it.
Nathan Worden's avatar
Keep us posted if you take action @petepaleo & @tecantra ! Thanks for y'alls thoughts 🙌
Michael Panebianco's avatar
@nathanworden @petepaleo Long @ $36.96, SL @ $31.08, TP @ $40
Nathan Worden's avatar
😃🙌🙏

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