$FUN · Verified Investing · 2026-11-06

I'm watching FUN. This is the ticker for Six Flags Corporation and Cedar Fair. Their recent merger has caused quite a stir in the theme park community.

Okay. Let me give you some context. I worked in the theme park industry for a few years. Okay. I was in a high-ranking position. So I know these things well, and their decision to merge was a big one. So I want to look into them a little.

Six Flags. When riding a roller coaster, make sure that your harness is properly fastened. Or hold on tight. Hold on tight. Hold. Just like Diamond Hands holds when the market falls. Same thing. Hold.

Yesterday too, friends, let me say something very quickly before going to FUN. The market's VIX is still rising and people are buying puts. That's insurance. That is market insurance.

It is not a good idea to buy puts when the market is collapsing. It's better to hedge them in advance. If you go to prepare when the market crashes, you will have to pay a higher price. Be aware.

Okay. Let's discuss Six Flags. Let's see what the chart says. I have no idea. He is heading there now. I'm a little scared of what the chart will look like, because a few days ago I tried trading at Six Flags.

The situation was not good, and then the terrible news came recently. I worked at the same Six Flags in Georgia where that tragedy occurred.

Anyway, let's look at the chart. We'll go deeper into the chart with Jake. Okay. This is FUN, I see it consistently trending downward. Okay, and to see its price action, we need to zoom out a bit.

This is 2025 and like I said, we're only going down. Here we have had a big drop in prices and then a slight increase and the same situation again. But, do you see this slight increase?

This was in July. We couldn't reach any new heights. No. Buyers tried to push prices up, but we would break through when we reached new highs. Instead, we were rejected and saw even greater price declines.

Next, we won't discuss the news, but a few weeks ago, the news he pointed to brought FUN down even further.

Okay? Now, how do we find the support level for this? So just know, yes, it's strengthening quite nicely today, about 6%. They released their earnings report yesterday or the day before.

So, now we see a lot more volume and prices rising.

Okay. But, when I look at a chart that has taken a lot of beatings over the years, it gives me an idea to go long. Hmm. If I were to talk about an idea for an option, it would convert a long position into a call option.

So, of course, we need to find support levels. Is now the right time to buy, just because it is at an all-time low? I know that things can continue to be at all-time lows or highs. Okay? So, we need some levels.

So, first if I zoom out, look back to 2021, if we look here, I still don't find any support levels. We are still below these low swings. So, at this stage, I will increase my time frame.

I'm going on a weekly time frame here. Oh, great. It was on the daily chart. Okay, now we have some price action that we can move forward with. Okay, so the price is now at 982.

Man. But yes, it is consistently going down. So, right here, I'm looking at this trend line. This is the foundation right here. Yes, okay, that's good. So, I'm turning to support.

I'm not talking about a few years ago, I'm talking about a few decades ago. This is support from the low pivot of February 23, 2009. Okay? And its price is 654. Okay, we have a trend line here or a horizontal trend line.

Hmm. And before that, behind. We can go further down. Now, we're talking about support from the eighties, right? Wow, going back to the very beginning. No, it's a little too high.

Wow. Right here. Now, if we were to say, oops, sorry, it's the same level. I'm trying to go down a little. This is it. Great. Yes, so if FUN continues to fall further, then guys, I'm looking for support from the 1980 price action.

Now, it is coming in at 488 on the FUN chart. Okay.

So, along with that, I'm also looking at the RSI. On the weekly chart, it has started to rise. It had moved into oversold territory. Now, let's go back to the daily chart. Even on the daily chart, we were in oversold territory.

But now, after the earnings report was released, there has been a lot more volume. We have now jumped quite a bit to a Momentum Index reading of 55.

So, from a technical perspective right now, and sorry, I'm rambling on and on. This rise of FUN, first of all, I'm not going to get into that right now, okay? I'm not going to jump into FOMO just because it's growing.

But this hasn't proven anything to me yet. What I need to see first is acceptance. Okay? I need to make sure that this movement actually has a basis. Yes. So for Six Flags or FUN, I need it to go above level 1057.

This is this low pivot and if the price continues to rise against it, I would have a stronger belief that, "Okay, this has the potential to go higher." But not just based on this initial movement.

Okay? Even through this, we can be patient. If the price goes up and is rejected, I can wait until the price returns to the support zone and the price will be cheaper because I am not chasing then.

Okay? I prefer to wait until the price convinces me that it has a basis. And with the price action here, I would consider it for the next pivot on a long-term basis. If we can find a call setup for this, that would be my goal.

If we can get a rejection from the 1057 level and return to the 654 support level, then I would consider taking a call position. Okay? Or we can wait until the price moves above this initial resistance level, confirm during the retracement that it has a base, and then we can take a position to move higher.

It depends on whether you want to jump in now and be aggressive, or wait a little longer and stay conservative.

So, right now I'm leaning towards waiting for Six Flags to make a deal, but let's see what Tabby sees in the market and what he creates.

Yeah, so I'm not very confident about this. Um, I think I'm wondering what that pop-up is, because after that accident they announced that they were changing the seat belts on all roller coasters made by the same manufacturer.

So, people started saying, "Well, at least you're doing something." But, still. It's good to at least be active. We like to see it. Yeah, but you know, Six Flags doesn't have many fans.

Okay. So, I really have no idea. I know I shouldn't follow the news about this and base everything on the news, because that's just following hype or rumors.

So, yes, 100% and there's a very solid reason for it. As he was saying, he's not worried about the news, he's not worried about hype or the fear of missing out on anything. He is only worried about technicals and charts.

Same as yesterday, friends. We saw the Nasdaq suffer a major collapse. However, today we have taken a little detour. Okay? You still managed to make a profit. When everyone in the market is afraid, that's when it's time to, you know, take a chance. Bought at that cheap price.

Yeah, it'll be pretty fun to see what's on the chain... yeah, so right now, let's go. Coming. So, now, Tabby, notice that Six Flags is now at 9.90, trading intraday. And it's also important to remember that its average volume is about 5.8 million. Okay?

Oh. For some names that we don't usually trade, we want to make sure they are liquid. And we will definitely check it out. How do we verify liquidity? Um, you know, it looks like... is there a lot of volume?

Open interest? Right, absolutely. Lots of volume and open interest. These two metrics are enough to see whether there will be liquidity in these strikes or not. Usually, you don't have to worry about this with Tesla, Microsoft, Amazon.

You will find very tight and healthy spreads there. For a small company like Six Flags, you have to be careful about this, okay? You have to be sure, and let's go one step further, Tabby.

Yes. Why is this liquidity important? Why are people trading there, why is it important to have it? Because it involves movement so that we can earn money, right? Right, yes. Volatility, but I want you to think about the buyer and the seller.

If there are many buyers and many sellers in Tesla, that spread will be healthier. Yes, more opportunities. But now I want you to think, what if there are only three sellers, but lots of buyers?

Oh. So, what do you think the seller will do? Will ask for a higher price. That's right. Absolutely correct. Now, if they ask for a higher price, some buyers will be willing to pay it, some won't.

Now, the gap for that spread is going to widen. Okay? Do you understand what I mean? Yes, yes. Okay, those of you at home, make sure to take note of this. Yes. So, now we know the basis of value.

Yes. So, now we are ready to start working with the chain.

Quite. Jake, get ready. Okay. We are watching F U N in IBKR. I really like this ticker. I know that's the platform, and it's perfect for today, and guys, it wasn't planned. Okay.

So, Tabby, you know, I'll kind of take the lead here, but let's see how you navigate the chain, okay? Yes. You can either start with the expiration date, or you can start with the strike.

Make sure you're looking at calls or puts, and then we'll continue working on all those metrics.

Subject. Can I say this? Would it be bad if we looked at what the interest was and made our decisions based on that? Based on that? Because I have no idea. That's okay. I'm looking at some big numbers here, so it's a two-week expiration, and so right now at the $10 strike I'm looking at 1000, but I clicked on this December 18th, and I'm looking at more.

I wonder if people are assuming this is because more people go to theme parks during Christmas for their big Christmas festivities? Okay. I'm thinking, I don't know. Is it possible?

Does this sound stupid? I don't know. No, I don't think it's stupid. That-- that might be a good idea, I mean... So, just because-- So, just because it's 40 days later, closer to Christmas, doesn't mean there's just going to be more people in the park. Okay. Okay? Okay. Okay.

So, now I'm looking at the open interest levels here. So, hmm, with two weeks left until the deadline, we only had 1,000. But, here on the put side, we're coming in at 10,000. Wow.

At 1250 strikes, we have 10,000. So, there are a lot more people here. And then 10,000, but only one volume? Yes, just one. That's a man. Is that a tabby? Is this you? It's me.

And then we have three people on 15 strikes. Those are his friends. And then 60 people, they're here on strike 7.5. Okay. So, what are you seeing on the call side now? Because that was the put side.

Yes, the volume is higher on the call side, but the open interest is lower. Okay. Are you sure? Hmm, be sure because it's 10,000, I see that open interest. There are 215 of them.

Okay. Now, I want you to look at the entire column. Do you see anything else? What do you mean? As such, all open interest is everywhere on the call side. Well, let me ask you, Tabby.

Where else are you seeing large amounts of open interest? Oh, here's a 10,000, here's a 10,000, here's a 10,000. And it's in the money. And then deep in the money on the put side.

And then it's the call side. So here are a lot of, these are—so, what I'm seeing, if we go back to me just looking at the FUN chain, there are a lot of put sellers here that are close to in the money.

Hmm. However, many bullish calls are being bought on out-of-the-money tickets. There is a lot of out-of-the-money interest in the 20 strike and 25 strike. Okay? Okay. Okay. So, they are paying a much lower price for it.

Yes. Okay? For a bullish bet, only 42 days remain. Okay. Okay? Okay?

Now, just because there are 10,000 at 20 or 10,000 at 25, does that mean it's bullish? No. Okay. Why? Because what is the volume there? Don't we need some volume there as another indicator to give confidence?

Hmm yes, options open interest accumulates over time. So, that's a bit old news, but that doesn't negate the fact that there are a lot of people out there. What I'm asking is, those 10,000 people, are they just call bullish people?

Nothing, right? These are calls, puts and that's it. So, what I'm saying is that there may be sellers out there. Yes. Sellers can sit at the 20 or 25 strike price, and every time it reaches that level, they are selling to ensure that it doesn't go any higher.

Okay. Okay? Okay. Okay. Remember, those sellers might keep creating new levels by making the market fluctuate, okay? Just like we saw last week, right? Yes. Because we are at the very bottom of the chart. Really? That's true.

So, Tabby, what else do you see here? Okay. If you want to choose one of your moves, let me zoom in. I can't see. Okay, let's see. I'm seeing some delta. So, Tabby, first of all, what do you see?

Tabby, you're making this today. Are you looking at a call or a put? I'm looking at calls because the open interest on the call side is much higher. Okay. So, even though we're near the bottom of the chart, don't you think there's potential for it to go even lower?

I mean, never say never. Okay, that's fair. It can go down. Okay. Can I cause another accident? I don't know. Oh my God. I don't know. I'm just looking at the numbers and I like to see more numbers on the call side, so it's making me more interested, but I don't know.

Okay. What um when I'm emotional. What about expiration? What term are you looking for? It is 42 days. Let's see, let's see the one from March, 133 days. It's close to my birthday.

Okay. March. And now it's close to his birthday and the strike price is $9. Hmm. Okay, or 985, sorry. Um, that's the underlying. So you're looking at March. What do you like about this chain?

Uh, I don't know. I think it was on the call side. Well, I can't see it now. Okay. On the call side, uh, I like that there's 1000 open interest, 30 volume, but there's 1000, so if we have at least 500 volume in a stock like that, it should be liquid or readily available.

Okay. Okay. So you can see that today's volume confirms that they like this position. Because it's at 12.50. Yes, 12.50 and 15 are the most. Hmm. I mean, I don't think I know. I feel very nervous about this.

Why? This is your trade. I know, but Six Flags is very ...I don't know. This is not right. You have a lot of...well, I think he wants to put his money somewhere where he can make a profit.

So maybe you believe in SpaceX. I heard you were investing in that, but maybe you don't trust Six Flags. Okay. Maybe it's because of the way you left the place. Yes. You grabbed a hot dog on your way out and thought, "Okay."

Since Six Flags runs very slowly, except for today, we usually take 45 days, and here you might want to take double or triple that time.

Currently, the put-call volume is 1.39, so traders are still betting heavily on the price falling. Puts are more popular than calls when it comes to new investments. And our IV, or implied volatility, is about 77 percent.

He wants to wait and I also want to wait for the technicality of F U N. It is in a pretty good position today, but we want it to first be above the resistance level to confirm whether this movement will be permanent.

If it is rejected, we will wait for another bounce test at the support zone around 654 and we may get even lower prices and the earnings report is over.