Dilution
🟢 plain english
The company selling new shares, making every existing share a smaller slice of the business. For a stock that just spiked, it is instant gravity — and for call options on that stock, it is the fastest kill there is.
🔬 technical
A leveraged company whose stock just doubled has every rational reason to sell shares into the strength; its own recent filing history tells you whether the machinery (a shelf registration, a standing ATM offering (at-the-market) program) is already loaded. That is why the SEC feed is the first kill-trigger to watch after any violent rally: the announcement alone reprices the stock and collapses call premiums in minutes. Checking that the registration shelf is clear is a pre-trade step, not a post-mortem one.