Loading ...In response, short sellers have more than doubled their bets against DUST in 2017. Short interest is up 150% since the start of the year, and — at 5.41 million shares — is hovering just a chip-shot away from September’s record high levels. However, the shorts show no signs of backing down just yet, judging by the 10% increases in short interest during each of the past two reporting periods.
So with DUST looking due for a high-volatility directional breakout from its recent slumber, we’d stack the odds in favor of a downside breakout — with the caveat that high short interest could contribute to a breakout rally, in the event of a positive catalyst for DUST (or a negative catalyst for gold miners, if you’d rather). In any case, now is a cheap time to load up on short-term DUST options, based on Friday’s 30-day at-the-money implied volatility of 62.9%, in the 5th annual percentile. But if you do decide to speculate on DUST’s next big move, aim to limit your time frame to hours or days — not weeks or months.
https://www.schaeffersresearch.com/content/bgs/2017/11/23/taking-sides-in-the-dust-trendline-battle