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.
Trade Alert: Fading The Rally In Meme Stocks
Mixed CPI Fails To Cool Meme Stock Rally As ZeroHedge summarized it, today’s CPI report offered something for every narrative: Something for every narrative in this morning's CPI: Headline CPI tumbled (yay, Fed is done forever!); Goods inflation rebounding (Fed can pause as Services prices slow);
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.
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