When I see a news brief like "Atlassian put volume heavy and directionally bearish," does that mean what it seems to mean to someone not in the know: A indication of likely short-term stock price direction? Does it mean that people are long and buying insurance? And/or speculating on a drop? Are these basically the same, since expectation of a drop would be a reason people up "insurance" buys? Or does it mean something different altogether?Trying to learn. Thanks.
"Atlassian" is the company the news is about. "Put volume heavy" means there is an unusually large amount of puts being traded. "Directionally bearish" is indicating the expectation for the stock price to fall.Now, what does that mean? Put buyers are betting the stock will fall, but they may be wrong. Put sellers are betting the stock will rise or at least not fall that much (less than premium), but they may be wrong.Hope that helps.
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