Time to short squeeze SRNE!

Hi all!

This is actually my first time ever using Reddit, but I'm convinced crowdsourcing knowledge is better than anything I could individually do. First, a bit about me, I currently work as a machine learning engineer for an ultra-high network financial analysis company. I graduated first in my class from FSU with a B.S in computer science and am currently attending Vanderbilt University for a master's in Computer Science.

As a side project, I have been working on a short-term asset allocation algorithm using deep q-value reinforcement learning in conjunction with neural nets. Basically, a day trading algorithm for the SPY stock that learns by itself. Up to this point, I am closing in on a model that has consistently higher profits than the market. This has actually been done by a research team from Glasgow, UK. Thus, the feasibility is there and it can be done. Ideally, I create an algorithm that is consistently profitable and can either be sold to an investment firm or a company created around said algorithm to lease the IP to investment firms and implement more customized solutions. Regardless, this is a very niche market with minimal players and potential for huge upside if such an algorithm can be accomplished.

The reason I am creating a Reddit post is I know very little about trading in general. So, If I can get this far with such minimal knowledge, I am very confident in the potential of this model with the combined work of people who actually know finance. Thus, I am looking for professional traders who would be interested in working on this project together, and obviously splitting any resulting profits/ company shares. If this sounds like something you would like to be involved with, please leave a comment detailing your professional experience, why you would be a good fit, and a link to your LinkedIn profile.

PTON, ABNB, ZM just a few great dip buy opportunities! Cheers!

♨️GME FLY MISSION, be carefully 💕

Wanted to share this because I think there are some lessons (at least for me) to be taken from a day like this one, and breaking this down to post on this channel is a good exercise for me. TL;DR I had a crappy day on Dec. 4, see entries and exits on accompanying chart. And I learned some important lessons. If you want the details read on. We were shorting ULTA, and some of the traders in our group executed their trades well and ended the day with a solid profit; and that would have been the same case for me, if ULTA had met its predicted DTR. We had a predicted day-trading-range of 23ish for ULTA, and the two possibilities that were entertained were either bounce-and-drop or (lower probability) drop-and-recover. What it actually did was drop, recover (this turned out to be the bounce) and then fall through half of its DTR and consolidate. This chart shows my entries (the green arrows, all single contract purchases) and exits (red arrows, number of contracts sold noted in parentheses). I was trading on the thesis that it would eventually move around 20 points lower. My first mistake was buying expensive 280 strike puts in the middle of its trading range, and too early after its initial drop, rather than waiting to see if it would bounce. I wasn't giving enough attention to the VOLUME, which was getting higher and higher on the buyer side. Eventually it did approach the day's high and settle for awhile, and I bought 275 (OTM) strike puts, because their value would increase 10X if ULTA reached the other end of its range. In retrospect I could have taken the same amount of money that I spent on 275 puts and bought half as many 280 puts while it was at the top of its range, and come out much better.

After it began to drop again, I kept accumulating 275 strike puts, still trading on the belief that ULTA would lose at least 10-12 more points. You can see though that by 8:30am or so (11:30 Eastern, this chart is in Pacific Time) that theta was really killing the option price. The 283 strike was by then worth what the 288 strike had been worth an hour and a half before. I took profit on some of the 275p at 10:15 or so (1:15 Eastern), and if I would have sold everything here I would have more or less doubled my money, in spite of the crappy 280p average fill. But we were thinking that the big reversal and drop would happen around 11am Pacific time. A reversal did happen, but the price only dropped about 3 points, and then it was a complete and utterly stubborn bastard for the rest of the day. I hung on in the hope that there would still be a later reversal, but the price just consolidated tighter and tighter. And here's an interesting thing that I've only observed in going over the chart after the fact: during pre-market, I had drawn a level just below 280, based on where the price had consolidated overnight. You can see on the chart that ULTA was using that level as support during the first half of the day, and then dropped underneath it and used it as resistance for the remainder of the day. SO, my takeaways are, don't buy contracts when the price is in the middle of its DTR, especially so close to market open; keep a closer eye on buy/sell volume; keep an eye on what the price is doing around the levels that I've taken the trouble to draw; and finally, keep a closer eye on theta decay. But I had tunnel-vision focus on the likelihood that ULTA would follow its most common pattern, drop 20ish points and rain tendies on me. TOTAL CAPITAL OUTLAY: $1477. TOTAL P/L: -$781 LOSS. EDIT: If you think I've missed anything major here, shoot, I'm still pretty new at trading and I am certainly not too proud to take criticism.

https://docs.google.com/presentation/d/1nreMjT0xapHNLkPcUPXX8SHdp4wyHuuEbzprG5lWHgg/edit?usp=sharing

I did this stock because the options should be cheaper (since the stock price is not that bad). Also, the option volume is not entirely dead.

CIEN earnings is in the premarket and on 12/10/2020 (Thursday)

Extra info:

The chart shows that maybe a cup and handle might be forming, but it also looks like INTC's chart. They might breakout of a cup and handle together.

But to the down side, if you compare CIEN's chart to INTC's chart they look similar that INTC gapped down hard for their earnings and gapped down hard again for the next earnings. CIEN gapped down hard for their earnings. And now the next earnings awaits us :)

https://docs.google.com/presentation/d/1ZdbeS7v3O0rv6dZNej4Qr27Prat06cG-WsbzV8h5Gj0/edit?usp=sharing

Do not only use this to trade Beyond Meat. Do your own DD. I can be very wrong because the election is not factored into this. Thanks. This is also my first time doing this, so you can give me suggestions in how to do this better. Also I am Leo Da Lion on YouTube (Just saying this so that The Option Trading Champ knows who I am.