Hims & Hers crash is just another opportunity for retail to buy the dip

Retail traders are still running toward Hims & Hers despite the company’s record one-day loss after Novo Nordisk called off its partnership with the telehealth company.

Over the past five days, Hims has been one of the most bought securities on Interactive Brokers, more than Palantir, Apple, or Amazon. Despite dropping more than 30% on the news, the move “attracted opportunistic buyers,” Interactive Brokers Chief Strategist Steve Sosnick wrote in a Tuesday note.

“It can take some time to learn whether dip buying is instead knife catching, so the situation in HIMS will take a few days to resolve,” he wrote.

Options activity on the platform has also been tilted to the bullish side over this stretch, per Interactive Brokers’ data.

Hims zigzagged a bit throughout Tuesday morning as investors continued to digest the news. While the partnership was never a revenue driver for Hims, it did quell worries about litigation risk and presented the prospect of future collaborations with the drugmaker.