Lots of exciting action in (EBIX) Ebix, Inc. for those of you that like to live (or die) by the seat of your pants. Seemingly a negative story on SeekingAlpha.com caused the stock to plunge, which the company consequently responded to here.
Who to believe? Only price my friends. Only price. What else matters?
Let's take a look at the gory details after the jump!
Here's the vitals as of the end of the day. A blood curdling 24% drop! The kind of thing that really gets traders spooked!
You can see there was some massive action in the grab below, which was dominated by the front month options. How about those IV jumps?!
Well the skew says maybe! How about that elevated front month vol...For those not afraid of being short gamma the oh so obvious trade here is to do some sort of calendar with calls or puts. Maybe short a straddle in the front month and buy the back month. Lots of skew to work with though. No huge trades today, but there looks to be some calendar action in puts and calls. Keep an eye on this one tomorrow to see if order flow gives you any clues.
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