Trade Alert: Betting Against Another Meme Stock

One we missed before the FOMC meeting.

Two Out Of Three Before The FOMC

In a previous post, I mentioned placing bets against a few meme stocks.

I got filled on two of those trades before the FOMC meeting, but one of them got away from me. The one that got away was GameStop (GME 0.00%↑). As I wrote about it in the post above,

This one plummeted ~18% last week after missing on earnings and revenue, and firing its CEO, and as of Tuesday’s close, had gained it all back and more. Nothing fundamental has changed, beyond [Executive Chairman] Ryan Cohen upping his stake in the company.

As with the other two meme stocks, this one was too expensive to bet against using puts or the sorts of debit put spreads we’ve used on recent earnings trades, so we used a different strategy here, one which, in this case, offers

Details below.