BBBY Breakdown: Here’s How to Play the Hype
Dear Profit Takeover reader,
Bed Bath & Beyond Inc (NASDAQ:BBBY) is a meme stock now, just like AMC Entertainment Holdings Inc (NYSE:AMC) and GME – GameStop Corp. (NYSE:GME).
A meme stock is popular to trade based on social sentiment and pervasive “shares,” “re-tweets,” and “likes” on social media.
So trading these stocks is not based on any real logic or reasoning of the company’s earnings, products, or revenue.
Nevertheless, trading meme stocks can be profitable if you can get in and out at the right time.
BBBY is currently trading at $3.08, down from yesterday’s high of $5.86.
Here’s my take on the BBBY pop we saw yesterday and what’s ahead for this name…
If you look ahead to 2024 and 2025, there’s massive open interest on both the $1 put and the $2 put in BBBY…
Just to put it in perspective, the January 2025 $1 puts are $0.80 – that’s some strong certainty that BBBY will go out of business.
I will watch Big Money Flow on BBBY to see when big paper bets on a massive move lower.
And rather than the loving moniker “Blood-Bath and Beyond” I will refer to BBBY as “Bard-Bath and Beyond” going forward – referencing Google’s new chat AI.
Don’t forget, I will drop a free trade right here in the next edition of the Profit Takeover newsletter – so don’t miss out!
I’ll catch you tomorrow morning at 10:30 a.m. (ET) right here for the live Profit Takeover show.
Until next time,
February 07 2023
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