Actually I didn’t intend to make that point, but the point is still well made.
I remember not so long ago when IMB was floating around $24 after seeming to hit resistance at 22.50. Then it just slowly sank, day after day, until it reached its current level.
The takeaway, from my POV, is that you have to wait until the action makes absolutely no sense, where you’re ready to throw up your hands and go long just to get a piece of the bubble action. That’s the time to buy the puts/short the stock, assuming the fundamentals associated with the company have not changed. Also, once the puts/shorts start to pay off, always take profits on the way down. Shorting is always a trade, never an investment.