Trade Alert: Out of RDW Puts for a 80% Gain
Exiting ahead of earnings.
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A Stock Hyped By TikTok
In a trade alert last month, I mentioned placing a bearish bet on Redwire Corporation (RDW):
The new bearish position is in Redwire Corporation (RDW), which I wrote about earlier today.
That’s the stock with the weak fundamentals that spiked ~50% yesterday because of a TikTok video. I bought the $4 strike puts on it expiring in May for $0.75.
The stock is trading at $2.69 as I type this. There’s a good chance it drops further after it posts earnings tomorrow, but to be on the safe side I took profits just now, selling those puts at $1.35 for an 80% gain.
STC RDW 3 strike put exp 4/21 @0.35 post earnings, 40% profit