The 2 days of crazy gains, followed by a brutal two day drop, pretty much confirms one thing, the float is low.
From Tuesday to Wednesday, the spike in call buying forced market makers (together with a bunch of other traders/shortsellers, some probably already wiped if they got margin called), who were selling those calls to you, to hedge by buying shares, and that pushed the price up.
Then late Wednesday into Thursday, everything flipped. Calls got closed, puts started piling in, and the move completely reversed, sending the price down 75% from the top, yeah, seventy five percent.
To hedge all those puts, market makers have to short shares, less than 100 per put to stay delta neutral, and we are talking tens of thousands of puts across different strikes and expirations. That adds up fast and just fuels the drop.
At some point, when those puts stop printing and start bleeding, people will panic close, and that should flip things the other way again. How far does it go? No clue, but I am here for it, even being down 15% right now.
Worst case, I will just keep selling calls around $10 a month to average down for the rest of the year. With how tight the float is, IV on $CAR is not coming down much anytime soon.