Shares in Lumber Liquidators continue to rebound and last traded higher by 11.2% at $36.40 following the company’s investor call on Thursday. Implied volatility on its options has fallen by 12.1% to 87.7% having reached 127% as a result of the recent scandal.
Only four months since 1950 has the S&P 500 fallen by at least 7% only to close higher on the month. That’s exactly what happened in October – a record month for major stock indices and options volume.
This week’s market action demonstrated the ability of some investors to endure pain. Others were pushed out of their equities and other elements of their portfolios by margin calls. After five days of losses, equity markets recovered substantially from Wednesday’s low.