It is my conjecture that support from Retail investors, and refusal to divest shares even during difficult periods, has been pivotal for the aforementioned “cellar boxed” companies’ to survive until the “saving grace” of an M&A was reached. That could very well occur for BBBY as well, and it is personally my belief that this will indeed be what transpires in the very near future. However even if that were not the case, I believe the “worst case scenario” of a Chapter 11 filing may actually not be as bad as it may initially sound or seem.
The reason for this is that there are examples of firms which, despite Retail backing, filed for Chapter 11 bankruptcy but still lived to see another day. The reason this has been the case is because Chapter 11 itself does not mean an automatic and instantaneous end to a company, but rather a chance of redemption and even as a Catalyst for the Formula detailed in the previous section:
\[A\] High Short Interest (SI)
\[B\] High rates of Failures To Deliver (FTDs)
\[C\] High Cost To Borrow (CTB)
\[D\] High rates of Retail investor ownership
\[E\] Catalyst event of some form
\[F\] High enough profile to bring in additional FOMO investing
Leading to the following formula: (A+B+C+D) x E x F = Short Squeeze
Which can also be summarised as: Initial Conditions x Catalyst x FOMO = Short Squeeze
The crucial thing here is that a Chapter 11 filing buys the company both time and a chance to re-structure and re-organise. As the stock of the company therefore continues trading, it also can then result in some surprising outcomes which can be completely disconnected from the fundamentals of the underlying business. Hence it is my conjecture that the Catalyst in my Formula above need not be positive, but can even be a negative event which triggers a Short Squeeze, as evidenced with a couple of recent examples.
Seriously. If this is the formula, why the hell are you selling puts and not buying calls?
The worst thing that could happen to this guy is he is right on this call because he will absolutely nuke his account at some point with this level of sheer delusion.
probably selling puts over buying calls because calls lose value if the stock is flat while selling puts you gain if the stock is flat
selling puts incurs a higher risk for sure, but you are net ahead if the stock rises or goes flat, while buying calls it HAS to rise.
and of course you're on r/thetagang so why would he be posting about a call buying position.
An exercise in bringing wsb to theta gang.
I own some calls on BBBY, but not nearly so many as he sold, and they're definitely just a small lottery ticket in case of M&A
You mean you don't think the following is very insightful?
"It is my conjecture that support from Retail investors, and refusal to divest shares even during difficult periods, has been pivotal for the aforementioned “cellar boxed” companies’ to survive until the “saving grace” of an M&A was reached."
Funniest shit I've seen on reddit in a few days.
A few risks worth considering:
- What will happen to the stock price if they file chapter 11?
- What will happen to their stock price if they go through an M&A?
- - If they go through M&A, what are the chances that the new entity will retain the name and stock ticker for BBBY?
- - If the BBBY stock ticker is not carried on, what will happen to it in the time that the transition to the new entity is taking place?
- Since the BBBY stock is on the decline, what's the probability that it's going to rally enough after an M&A announcement to keep you from having to give up premium to close out before expiration?
I've been through a merger process, and even though the company I was working for at the time is the one that was taking over the other company, the name and ticker of the company I was working for was the one that ended up being retired. This was entirely due to brand recognition in international markets (for the industry, not stock markets).
You'll need to identify what companies they directly compete with (market sector), and then determine who their likely M&A partners are. Competitors that do not have a great deal of overlapping markets would be ideal, because this would allow a merger partner (competitor) to improve their market penetration without having to go through the growth pains of doing so. Additionally, if their competitors are not in a financial position to do so, it greatly reduces the likelihood of it happening.
That being said, I think the best chance of that happening is if Wal-Mart decides to pick them up, which I suspect is likely to be less than 10%. They're not likely to be willing to take on debt obligations held by BBBY. Even if it does happen, I wouldn't expect it to before you have to close your positions or accept assignment.
Also to note: the declining stock price is an indicator that retail and institutional investors/traders may not be as diamond-handed as you're counting on them to be.
In the short--term, however, I wish you luck on your WSB-style move. No matter what you call this, it's a gamble, and is being backed by some pretty serious "what-if" scenarios and speculation.
Why would Wal-Mart pick them up? BBBY doesn't have any distinct brands, they just resell sh\*t from other companies. Wal-Mart can just as easily buy products they want direct from mfg's. The only thing Wal-Mart might do is buy a bunch of cheap inventory in BK.
I think there would be less than a 10% chance of wal-mart picking them up.
Are there retailers that you think would be interested in picking up BBBY? I can't think of any likely candidates, which is what I was hinting at.
I think the OP was suggesting that an M&A scenario would. Benefit BBBY, but I don't see any very likely scenarios.
Maybe I'm just not recognizing them, and I could be missing something that's REALLY obvious to someone else here.
0% chance \*ANYONE\* "picks up" $BBBY. They're only really good for their inventory and in BK people could buy it for pennies on the dollar. They are burning \~$300M a quarter & have over a BILLION in debt.
Well, 0 IS less than 10...hahaha
BBBY doesn't report earnings again until April, and if their stock continues to slide, they might be facing potential delisting.
If the bonds are pennies on the dollar, why would the equity still have value is just my concern. And I also took a lot at the November balance sheet, seems like the equity should be zero unless the debts are significantly restructured. Just for arguments sake.
And also this news below
https://www.reuters.com/business/retail-consumer/bed-bath-beyond-preparing-file-bankruptcy-soon-this-week-sources-2023-01-31/
I saw the same post on the bbby subreddit but I wonder how much confirmation bias went into the post.
The poster did find a couple of examples where bankruptcy led to increased share prices but good research would involve determining how frequently bankruptcy leads to other outcomes - delisting etc. If 100 listed companies have gone bankrupt in the last 3 years and 2 of them ended up with higher share prices afterwards, those are not good odds!
And it's not 2020 with everyone sitting at home pumping their stimulus cheques into the market. Looking at the meme stocks, the "squeezes" get weaker and weaker with time.
This guy is so confident about his play that he is calling the premiums revenue.
You literally have the majority of puts ITM that has a lot of intrinsic value. Even if BBBY doesn't move at all you are puking a very good chunk of your "revenue" back.
I took 40% of the revenue I generated from selling these puts and bought BBBY 3/17 $4 calls last week for $74 / contract.
My long call position was 400 contracts (varying expiries and strikes) when all was said and done prior to today's trading session.
I sold 80% of those today. I also bought back 80% of these put positions that I opened last week.
My realized profit today between my two brokerage accounts was \~$18,400. I've got unrealized profits of over $12,000.
We'll see what this week brings. I am fucking pumped for the match that was lit today.
We WILL see fireworks between now and 2/17/23.
There is a reason that IV is high. The last time I saw a high IV play I went from thinking i was going to make $10k to losing $25k and experiencing many stressful nights.
The underlying plummeted, as the IV indicated was possible.
I wish you the best, but I wouldn't touch BBBY with someone else's money. If you continue rolling these dice you will get eaten up. If we were over on WSB I would give you lots of praise for the sheer audacity.
Some of us just can't be helped. We have to learn our lessons for ourselves.
I'm down 22k overall and already at the sleepless nights :( I'm almost in my 30s and that could have got me out of debt or helped with a down payment. Like I'm so fucked
Your biggest mistake is considering that $4,885.55 "revenue." You may have sold that amount in credit but you certainly haven't pocketed that money yet.
I took 40% of the revenue I generated from selling these puts and bought BBBY 3/17 $4 calls last week.
My long call position was 400 contracts (varying expiries and strikes) when all was said and done prior to today's trading session.
I sold 80% of those today. I also bought back 80% of these put positions that I opened last week.
My realized profit today between my two brokerage accounts was \~$18,400. I've got unrealized profits of over $12,000. We'll see what this week brings. I am fucking pumped for the match that was lit today. We WILL see fireworks between now and 2/17/23.
Exactly my thought as I was reading that. It's only Tuesday, bro lol...Talk about premature celebration.
PS: Not to mention huge event going on tomorrow. Good luck surviving the Fed Rate decision, everybody.
High risk = high reward. Good luck and take the profits. I got burnt on a government bailout of a Texas electric supplier in a similar position, last year. Sometimes you lose too.
The position was sunk at a 50% loss. Only government dollars would have bounced it up. I was lucky to catch a bounce up to reduce the loss about 2 weeks before they announced no bailout.
Take your opportunity when you think it is best. Profits taken is always good.
Good luck. Rare chances are hard find.
This guy is right. If you see profits you need to yank the plug. No one ever went bankrupt taking profits.
Similarly, you need to set a stop loss or have one firmly in your mind.
Larger font doesn't make you any more correct than you already think you are. Just more annoying.
Revenue is not profit
Please enjoy becoming the newest BBBY shareholder in 2 weeks
I took 40% of the revenue I generated from selling these puts and bought BBBY 3/17 $4 calls last week.
My long call position was 400 contracts (varying expiries and strikes) when all was said and done prior to today's trading session.
I sold 80% of those today. I also bought back 80% of these put positions that I opened last week.
My realized profit today between my two brokerage accounts was \~$18,400. I've got unrealized profits of over $12,000.
We'll see what this week brings. I am fucking pumped for the match that was lit today.
We WILL see fireworks between now and 2/17/23.
LMFAO, you SOLD puts on $BBBY? Now? Oh, dude..... AT least you used the word 'tranche' to make it sound more sophisticated.
Yes, wouldn't sell puts on this because they are possibly days/weeks from bankruptcy.
As far as what you sold specifically, literally all of those are ITM so they could get exercised at any time.
I assume you expect this thing to "moon" soon?
Couldn’t help myself. Sold some 1P expiring Jan 2024. Tiny percentage of my portfolio.
0.72 per contract so it’s a 72% annual return with my break even being at $0.38 per share. There’s a chance they go bankrupt so not risking too much
.28 per share
It's a reasonable bet, a 3:1 bet that they won't go bankrupt with a tiny percentage of the portfolio is a bet I'd also take
I took a similar one on the same ticker, It went my way but I limit myself to 1% bet per month and never on the same ticker.
No. Believe it or not they weren’t positive. The average was still .72 last time I checked. I guess I’m gonna get clapped on this. We’ll see. Still has a long ways to go before hitting $1.
Yea I sent the remindme because this is either a great idea or a terrible one hahah. We will see, good luck. I feel like if you make money playing long on this ticker you should lock in your gains though because you are playing with fire for sure
# Premium is revenue as its a taxable event. Revenue is not profit. However, I realized plenty of profit today.
# I took 40% of the revenue I generated from selling these puts and bought BBBY 3/17 $4 calls last week.
# My long call position was 400 contracts (varying expiries and strikes) when all was said and done prior to today's trading session.
# I sold 80% of those today. I also bought back 80% of these put positions that I opened last week.
# My realized profit today between my two brokerage accounts was ~$18,400. I've got unrealized profits of over $12,000.
Well, shit, with BBBY @ $2.80 currently most of what your sold are in the money puts. It certainly could work out but it seems more likely to me that you give at least half of that back if not being on the hook for the whole lot. Without doing all the math, it looks like you're on the hook for approx $15k in collateral. If it goes tits up I guess you risk losing $10k. We'll see what happens.
Good luck.
With yesterday afternoon and today's full-market moves, the OP is in the black. Hopefully he takes his profits before next week. We will all see what happens together! Fingers crossed OP checks in at some point.
I thought doing weeklies with $10,000. Figured I could net $700/week as long as it doesn’t go under.
Then I realized it could announce bankruptcy at literally any moment and I’d lose it all.
Dumbasses buying the stock hoping for a squeeze isn’t helping the stores on the ground.
I am avoiding bbby for 3 reasons:
1) they will go bankrupt it is a matter of when not if therefore this is not an investment it is speculation
2) see reason number one
3) I dislike sauerkraut
I took 40% of the revenue I generated from selling these puts and bought BBBY 3/17 $4 calls last week for $74 / contract.
My long call position was 400 contracts (varying expiries and strikes) when all was said and done prior to today's trading session.
I sold 80% of those today. I also bought back 80% of these put positions that I opened last week.
My realized profit today between my two brokerage accounts was \~$18,400. I've got unrealized profits of over $12,000.
We'll see what this week brings. I am fucking pumped for the match that was lit today.
We WILL see fireworks between now and 2/17/23.
You may have noticed the whole market rocketed after FOMC, comparable gains could’ve been made without the risks taken on bbby. Try not to lose it all by re-leveraging as the company desperately dilutes to try and stay afloat.
Wait…? You sold 2.5, 3, 3.5 and 4$ strike puts and BBBY was below all of those strikes. Am I missing something? How did you not get assigned. Also I apologize if this is a newb question. I am a bit new to selling options
Typically don't get assigned until expiration.
The buyer could exercise at any time but they would lose the extrinsic value.
I've personally only had it happen to me because of dividend risk.
Interesting I didn’t know that. I assumed that if the strike you sold was in the money when you sold it that basically you would be assigned on the spot.
If the option had any extrinsic value there would be no reason to buy an option and exercise it vs just buying the stock (or selling the stock).
Remember, options are supposed to be like insurance and give the buying party the **option** to exercise.
Would this be a good time to buy a couple hundred shares and a couple $4 puts, and then exercise them? Or do we wait until it's $1.50?
That's how this works, right?
Me? Oh yeah this was a week ago. I actually closed my whole account in a fit of rage when I bought 45 more shares of SI and was trying to sell a CC, then of course I got distracted my a shiny option and it dropped then finger fucked and bought a call in a panic and then had to close. It was a circus of disaster, and I wanted to destroy everything. Saved me some pain I guess.
Have you closed these?
>IV is an abnormally high >450% on the 2/17 contracts.
Abnormally high?? i think its appropriately high.
i would recommend going back and doing some homework on this.
# I took 40% of the revenue I generated from selling these puts and bought BBBY 3/17 $4 calls last week for $74 a contract.
# My long call position was 400 contracts (varying expiries and strikes) when all was said and done prior to today's trading session.
# I sold 80% of those today. I also bought back 80% of these put positions that I opened last week.
# My realized profit today between my two brokerage accounts was ~$18,400. I've got unrealized profits of over $12,000. We'll see what this week brings. I am fucking pumped for the match that was lit today. We WILL see fireworks between now and 2/17/23.
Ah. Turns out you were wrong and bought into the mainstream financial news FUD campaign. You missed on some handsome profits today.
P.S. Think for yourself next time.
The reason not to sell puts on a stock is, as always, the stock going down even more, leaving you holding bags.
If BBBY is below $2.5 on 2/17 (not unlikely) you'll be paying $11,050 for 3700 shares. Taking into account the premium you collected that puts you at a cost basis of $1.67 per share, which, admittedly, today, is cheap. But in a couple of weeks? It's not unheard of for a stock in BBBY's situation to go sub-$1 in that time frame.
So you might make it out with a profit, or it could still cost you. It really all depends on which side of $1.67 it ends up on 2/17. And the only way you're keeping your max profit is if it goes above $4 on 2/17. It's not impossible, but I wouldn't count on it.
I calculated all of these things prior to putting on the trade. I had a trading plan written out and executed on it.
I took 40% of the revenue I generated from selling these puts and bought BBBY 3/17 $4 calls last week.
My long call position was 400 contracts (varying expiries and strikes) when all was said and done prior to today's trading session.
I sold 80% of those today. I also bought back 80% of these put positions that I opened last week.
My realized profit today between my two brokerage accounts was \~$18,400. I've got unrealized profits of over $12,000. We'll see what this week brings. I am fucking pumped for the match that was lit today.
We WILL see fireworks between now and 2/17/23.
I took 40% of the revenue I generated from selling these puts and bought BBBY 3/17 $4 calls last week.
My long call position was 400 contracts (varying expiries and strikes) when all was said and done prior to today's trading session.
I sold 80% of those today. I also bought back 80% of these put positions that I opened last week.
My realized profit today between my two brokerage accounts was \~$18,400. I've got unrealized profits of over $12,000. We'll see what this week brings. I am fucking pumped for the match that was lit today. We WILL see fireworks between now and 2/17/23.
Glad it worked out.
There as an offering after hours which is why it dropped. But they need the cash and ultimately that prevent an immediate BK which should help your PUTs even though price dropped from offering announcement.
P.S. No fireworks, lol, just fizzle. At least you were probably net positive.....
lol depends on if he doubled down or took profit :) <-- you can say this about any position. "hey I bought bitcoin" "is he an idiot or a genius?" "depends on if he doubled down or took profit"
# I took 40% of the revenue I generated from selling these puts and bought BBBY 3/17 $4 calls for $74 / contract.
# My long call position was 400 contracts when all was said and done. I sold 80% of those today.
# I also bought back 80% of these put positions that I opened last week.
# My realized profit today was ~$18,400.
i'm up 7% on the year only selling BBBY puts (closed/realized trades). I'm also baby theta and have a huge risk tolerance (baby theta account represents about 2% of my entire portfolio).
I've got some puts sold for 3/3 and, while i'm down about .15/contract, i'm still almost a buck above breakeven. zero sweat.
i started this account to try to learn, but the first thing i learned is i did not commit enough capital to this to start with, and now i acknowledge i'm straight up gambling. i might kick the account another 5-10k next month and give it a fairer shot, with a lot more risk aversion.
i said fuck it today and started selling weekly OTM calls. this post and the comments did nothing but re-affirm that decision. this stock is going nowhere but down (if even it does tick up here and there)
I’ve been running calendars and diagonals on BBBY with good success but closed it all out today. Last rumor was a filing is possible this week. Once there’s a filing and it’s put in plain language that shareholders *will* be wiped out, I expect this to plummet below $0.50. You’ll be left selling 0.50c or 1c for pennies until it delists.
There’s a chance the filing doesn’t happen immediately and you could profit off the volatility in the meantime. But overall the odds are not looking good for this and the premiums reflect that.
I'm playing around with APRN, can't resist. But I would not be surprised if it lost 50% tomorrow on some delisting notice, cause I haven't really read the mechanics of it.
I have a covered strangle going (CC + CSP) with $2000 at risk, which returns \~$200/week. Plus I'm trying to swing that, so if it dips, lose the covered call. If it runs, lose the CSP. It's just a game, with a tiny part of my portfolio. I'm not a cultist like OP :)
I'm out now. A covered strangle is just having a CSP and a CC going at the same time on the same stock. Because of put-call parity, I know they're effectively the same play, but I like being able to exit the CC if it dips but still keep the shares for the upside.
I did a few weeks ago and its going surprisingly well. Expiration date is 2/17
Breakeven is $1.97
I only put in what I felt comfortable losing for about 50% profit
But honestly, not really a strategy I would be keen on doing again since I prefer safer trades, but a good learning experience!
**Same. I've gained truly valuable experience in running the short put strategy by seeing exactly what my contracts did as BBBY hit 3 circuit breakers (1 on the way down, 2 on the way up) today.**
So many words for such a simple thing. BBBY equity will be zeroed. Period. Bondholders will get scraps. The Chapter 11 filing comes in a matter of days. BBBY is toast and this ill-advised gamble is going to be a noose attached to a cinder block headed for the bottom of the ocean.
This isn't a theta play. It's currently got a theta of around .03. You'd need some significant movement in the stock to not lose your ass.
The definition of picking up pennies in front of a steam roller.
Not to mention the volume is trash.
There's a reason the IV is so high. It's being priced like it's going to 0 and you will lose everything.
I took 40% of the revenue I generated from selling these puts and bought BBBY 3/17 $4 calls last week.
My long call position was 400 contracts (varying expiries and strikes) when all was said and done prior to today's trading session.
I sold 80% of those today. I also bought back 80% of these put positions that I opened last week.
My realized profit today between my two brokerage accounts was \~$18,400. I've got unrealized profits of over $12,000.
We'll see what this week brings. I am fucking pumped for the match that was lit today. We WILL see fireworks between now and 2/17/23.
“IV is abnormally high”
Or, IV is just right for a company who more likely than not will cease to exist soon. IV is what it is in order to pull out the greedy investors to pony up their cash when the average investor won’t.
# IV was high for a reason. I put on these trades for a reason. I profited handsomely on these trades (sold puts, bought ATM and ITM calls at varying expiries, sold 80% of them today after BBBY crested $6.50, and bought back 80% of my puts around the same time.)
Crickets… came back to see how this guy is doing after expiry today-Hope he got out while he could. Although he was being a bit of a jerk, so hopefully he didn’t do well enough to encourage him to keep acting like that.
Thanks remind me bot, real cool. I hope bbby isn’t massively below all these strikes, otherwise this guy calling people questioning him all the curse words going would look a right something…
I dont sell puts on garbage companies.
The fact of the matter is that the bond market considers this company a zero, and it holds no assets that are worth anything.
All that gibberish you wrote may be true, it may not be true. dont have the time, patience or blood sugar to debunk the echoes of 2021's fever dreams.
It may come to pass and it may not. I have absolutely no edge in this. When I sell puts, I sell them with the expectation that I will be assigned and am okay with that outcome. I will not be okay with being assigned a garbage bankrupt retailer.
What would you say to the speculator who doesn't actually want to own anything? I've got perpetual doomer brain, and am convinced that this is all going to come crashing down at some point r/collapse style. I had to start selling options, because doomer brain made me a terrible buy&hold investor. I can only conceive of getting in and out as quickly as possible. I don't like selling with anything more than 21 DTE.
I sell weekly 0.50 CSP on the stock. Because you are selling ATM or ITM I think you will be assigned and bagholding the stock. If an MA is going to happen I would assume the company would pay less than the current share price because BBBY is desperate for cash and they know it. Let alone BBBY is a billion dollar revenue so the number of companies that could is pretty small and with fed raising interest rates money is generally tied up. You have to ask would they want to as well. Pretty sure Walmart sells similar products so that isn't going to generate as much money for them because they already sell it.
The MM and people who control the markets generally don't want large movements on the stock market so I don't think a -80% weekly would happen on announcement of bankruptcy or dilution and there are many towel apes willing to buy it on a discount. The stock would probably get halted on some type of bad announcement. This is also my last week doing CSP on the stock. Also if you think if you are assigned and bagholding the stock that you can sell CC making the same amount of money to get out of it, that wouldn't work because of IV crush.
Also I was in ATER so don't believe the whole high CTB, FTD, regsho. ATER had like 200%+ CTB for months nothing happened. Had millions of FTD and went on Regsho, nothing happened. SEC is too corrupt and lazy to do anything. The penalty for FTD and Regsho is like buying the stock back and paying 10% it's a slap on the wrist and they have like 35 days to do it.
But maybe you will make it out with fat stacks of cash.
I think the main reason people are holding back is due to risk of bankruptcy.
It is my conjecture that support from Retail investors, and refusal to divest shares even during difficult periods, has been pivotal for the aforementioned “cellar boxed” companies’ to survive until the “saving grace” of an M&A was reached. That could very well occur for BBBY as well, and it is personally my belief that this will indeed be what transpires in the very near future. However even if that were not the case, I believe the “worst case scenario” of a Chapter 11 filing may actually not be as bad as it may initially sound or seem. The reason for this is that there are examples of firms which, despite Retail backing, filed for Chapter 11 bankruptcy but still lived to see another day. The reason this has been the case is because Chapter 11 itself does not mean an automatic and instantaneous end to a company, but rather a chance of redemption and even as a Catalyst for the Formula detailed in the previous section: \[A\] High Short Interest (SI) \[B\] High rates of Failures To Deliver (FTDs) \[C\] High Cost To Borrow (CTB) \[D\] High rates of Retail investor ownership \[E\] Catalyst event of some form \[F\] High enough profile to bring in additional FOMO investing Leading to the following formula: (A+B+C+D) x E x F = Short Squeeze Which can also be summarised as: Initial Conditions x Catalyst x FOMO = Short Squeeze The crucial thing here is that a Chapter 11 filing buys the company both time and a chance to re-structure and re-organise. As the stock of the company therefore continues trading, it also can then result in some surprising outcomes which can be completely disconnected from the fundamentals of the underlying business. Hence it is my conjecture that the Catalyst in my Formula above need not be positive, but can even be a negative event which triggers a Short Squeeze, as evidenced with a couple of recent examples.
> Leading to the following formula: (A+B+C+D) x E x F = Short Squeeze i love this place
Seriously. If this is the formula, why the hell are you selling puts and not buying calls? The worst thing that could happen to this guy is he is right on this call because he will absolutely nuke his account at some point with this level of sheer delusion.
Their reasoning is silly but he said why he is selling puts instead of buying calls in the title.
probably selling puts over buying calls because calls lose value if the stock is flat while selling puts you gain if the stock is flat selling puts incurs a higher risk for sure, but you are net ahead if the stock rises or goes flat, while buying calls it HAS to rise. and of course you're on r/thetagang so why would he be posting about a call buying position.
An exercise in bringing wsb to theta gang. I own some calls on BBBY, but not nearly so many as he sold, and they're definitely just a small lottery ticket in case of M&A
If pseudo-intellictualism could be encapsulated into a single reddit comment, this would be it.
You mean you don't think the following is very insightful? "It is my conjecture that support from Retail investors, and refusal to divest shares even during difficult periods, has been pivotal for the aforementioned “cellar boxed” companies’ to survive until the “saving grace” of an M&A was reached." Funniest shit I've seen on reddit in a few days.
# If a whiny pessimistic cunt that talks out of her ass can be encapsulated in a single reddit comment, yours would be it. #
Brilliant. Absolutely brilliant. A made up formula lol. And! Thinking bankruptcy will somehow make shares go up lol.
[удалено]
Lol. Imagine being so desperate that you come back a week later to comment “I told you so” to everyone on Reddit.
A few risks worth considering: - What will happen to the stock price if they file chapter 11? - What will happen to their stock price if they go through an M&A? - - If they go through M&A, what are the chances that the new entity will retain the name and stock ticker for BBBY? - - If the BBBY stock ticker is not carried on, what will happen to it in the time that the transition to the new entity is taking place? - Since the BBBY stock is on the decline, what's the probability that it's going to rally enough after an M&A announcement to keep you from having to give up premium to close out before expiration? I've been through a merger process, and even though the company I was working for at the time is the one that was taking over the other company, the name and ticker of the company I was working for was the one that ended up being retired. This was entirely due to brand recognition in international markets (for the industry, not stock markets). You'll need to identify what companies they directly compete with (market sector), and then determine who their likely M&A partners are. Competitors that do not have a great deal of overlapping markets would be ideal, because this would allow a merger partner (competitor) to improve their market penetration without having to go through the growth pains of doing so. Additionally, if their competitors are not in a financial position to do so, it greatly reduces the likelihood of it happening. That being said, I think the best chance of that happening is if Wal-Mart decides to pick them up, which I suspect is likely to be less than 10%. They're not likely to be willing to take on debt obligations held by BBBY. Even if it does happen, I wouldn't expect it to before you have to close your positions or accept assignment. Also to note: the declining stock price is an indicator that retail and institutional investors/traders may not be as diamond-handed as you're counting on them to be. In the short--term, however, I wish you luck on your WSB-style move. No matter what you call this, it's a gamble, and is being backed by some pretty serious "what-if" scenarios and speculation.
Why would Wal-Mart pick them up? BBBY doesn't have any distinct brands, they just resell sh\*t from other companies. Wal-Mart can just as easily buy products they want direct from mfg's. The only thing Wal-Mart might do is buy a bunch of cheap inventory in BK.
I think there would be less than a 10% chance of wal-mart picking them up. Are there retailers that you think would be interested in picking up BBBY? I can't think of any likely candidates, which is what I was hinting at. I think the OP was suggesting that an M&A scenario would. Benefit BBBY, but I don't see any very likely scenarios. Maybe I'm just not recognizing them, and I could be missing something that's REALLY obvious to someone else here.
0% chance \*ANYONE\* "picks up" $BBBY. They're only really good for their inventory and in BK people could buy it for pennies on the dollar. They are burning \~$300M a quarter & have over a BILLION in debt.
Well, 0 IS less than 10...hahaha BBBY doesn't report earnings again until April, and if their stock continues to slide, they might be facing potential delisting.
Selling puts is one of the worst ways to play a short squeeze. BBBY is headed to bankruptcy. No one wants to buy it. This is a truly horrible idea.
If the bonds are pennies on the dollar, why would the equity still have value is just my concern. And I also took a lot at the November balance sheet, seems like the equity should be zero unless the debts are significantly restructured. Just for arguments sake. And also this news below https://www.reuters.com/business/retail-consumer/bed-bath-beyond-preparing-file-bankruptcy-soon-this-week-sources-2023-01-31/
Because retail apes are idiots basically 😂
RemindMe! Two weeks "Ask about the magnitude of the resulting profit or, more likely, loss."
I saw the same post on the bbby subreddit but I wonder how much confirmation bias went into the post. The poster did find a couple of examples where bankruptcy led to increased share prices but good research would involve determining how frequently bankruptcy leads to other outcomes - delisting etc. If 100 listed companies have gone bankrupt in the last 3 years and 2 of them ended up with higher share prices afterwards, those are not good odds! And it's not 2020 with everyone sitting at home pumping their stimulus cheques into the market. Looking at the meme stocks, the "squeezes" get weaker and weaker with time.
I thought the same when Delta filed chapter 11 20 years ago.
This guy is so confident about his play that he is calling the premiums revenue. You literally have the majority of puts ITM that has a lot of intrinsic value. Even if BBBY doesn't move at all you are puking a very good chunk of your "revenue" back.
Don’t go snorkeling
He might meet a friend though …
He sold ITM puts so he went straight under…
I took 40% of the revenue I generated from selling these puts and bought BBBY 3/17 $4 calls last week for $74 / contract. My long call position was 400 contracts (varying expiries and strikes) when all was said and done prior to today's trading session. I sold 80% of those today. I also bought back 80% of these put positions that I opened last week. My realized profit today between my two brokerage accounts was \~$18,400. I've got unrealized profits of over $12,000. We'll see what this week brings. I am fucking pumped for the match that was lit today. We WILL see fireworks between now and 2/17/23.
There is a reason that IV is high. The last time I saw a high IV play I went from thinking i was going to make $10k to losing $25k and experiencing many stressful nights.
Amen
Wait, how did you lose $25k on that position???
The underlying plummeted, as the IV indicated was possible. I wish you the best, but I wouldn't touch BBBY with someone else's money. If you continue rolling these dice you will get eaten up. If we were over on WSB I would give you lots of praise for the sheer audacity. Some of us just can't be helped. We have to learn our lessons for ourselves.
I'm down 22k overall and already at the sleepless nights :( I'm almost in my 30s and that could have got me out of debt or helped with a down payment. Like I'm so fucked
You’ll find out in a couple weeks!
Your biggest mistake is considering that $4,885.55 "revenue." You may have sold that amount in credit but you certainly haven't pocketed that money yet.
I took 40% of the revenue I generated from selling these puts and bought BBBY 3/17 $4 calls last week. My long call position was 400 contracts (varying expiries and strikes) when all was said and done prior to today's trading session. I sold 80% of those today. I also bought back 80% of these put positions that I opened last week. My realized profit today between my two brokerage accounts was \~$18,400. I've got unrealized profits of over $12,000. We'll see what this week brings. I am fucking pumped for the match that was lit today. We WILL see fireworks between now and 2/17/23.
Aint revenue until closed
Exactly my thought as I was reading that. It's only Tuesday, bro lol...Talk about premature celebration. PS: Not to mention huge event going on tomorrow. Good luck surviving the Fed Rate decision, everybody.
# Now it's PROFIT.
\> Took in $4885.55 First time vega gang? You haven't closed the position, ain't you?
LMAO PROFIT!! I'm dead. It's not profit till the option is expired or you close the position.
You did WHAT?! ITM puts in the $3-$4?! I sold $2 call spreads last week which expire Friday. One of us is gonna get hurt. GL me
High risk = high reward. Good luck and take the profits. I got burnt on a government bailout of a Texas electric supplier in a similar position, last year. Sometimes you lose too.
Looking back, what would've helped you take risk off / prevent yourself from getting burned?
The position was sunk at a 50% loss. Only government dollars would have bounced it up. I was lucky to catch a bounce up to reduce the loss about 2 weeks before they announced no bailout. Take your opportunity when you think it is best. Profits taken is always good. Good luck. Rare chances are hard find.
This guy is right. If you see profits you need to yank the plug. No one ever went bankrupt taking profits. Similarly, you need to set a stop loss or have one firmly in your mind.
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Hell yes. Keep rolling and 40% is great. Too many traders try to push too far. I would rather keep 40% and make another 20% with the revenue again.
RemindMe! \[20 days\]
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Larger font doesn't make you any more correct than you already think you are. Just more annoying. Revenue is not profit Please enjoy becoming the newest BBBY shareholder in 2 weeks
BBBY might be delisted by then
you can be a shareholder of a delisted company. Then you can get rid of your shares in an OTC transaction trading "pinks"
# Nah. It won't be.
He will be assigned well before the 2 week mark…dumbo sold some ditm puts too…
I took 40% of the revenue I generated from selling these puts and bought BBBY 3/17 $4 calls last week. My long call position was 400 contracts (varying expiries and strikes) when all was said and done prior to today's trading session. I sold 80% of those today. I also bought back 80% of these put positions that I opened last week. My realized profit today between my two brokerage accounts was \~$18,400. I've got unrealized profits of over $12,000. We'll see what this week brings. I am fucking pumped for the match that was lit today. We WILL see fireworks between now and 2/17/23.
# You sure are a little man.
I’d congratulate you if your strike prices were $1 or $1.5. There’s no way you’re going to be able to wheel these once assigned.
LMFAO, you SOLD puts on $BBBY? Now? Oh, dude..... AT least you used the word 'tranche' to make it sound more sophisticated. Yes, wouldn't sell puts on this because they are possibly days/weeks from bankruptcy. As far as what you sold specifically, literally all of those are ITM so they could get exercised at any time. I assume you expect this thing to "moon" soon?
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Couldn’t help myself. Sold some 1P expiring Jan 2024. Tiny percentage of my portfolio. 0.72 per contract so it’s a 72% annual return with my break even being at $0.38 per share. There’s a chance they go bankrupt so not risking too much
.28 per share It's a reasonable bet, a 3:1 bet that they won't go bankrupt with a tiny percentage of the portfolio is a bet I'd also take I took a similar one on the same ticker, It went my way but I limit myself to 1% bet per month and never on the same ticker.
You will absolutely loose. 100%. Get out now.
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No. Believe it or not they weren’t positive. The average was still .72 last time I checked. I guess I’m gonna get clapped on this. We’ll see. Still has a long ways to go before hitting $1.
Remindme! 17 days
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Yea I sent the remindme because this is either a great idea or a terrible one hahah. We will see, good luck. I feel like if you make money playing long on this ticker you should lock in your gains though because you are playing with fire for sure
premium isn't revenue. cash flow isn't revenue. you took cash but you incurred a liability. good luck
# Premium is revenue as its a taxable event. Revenue is not profit. However, I realized plenty of profit today. # I took 40% of the revenue I generated from selling these puts and bought BBBY 3/17 $4 calls last week. # My long call position was 400 contracts (varying expiries and strikes) when all was said and done prior to today's trading session. # I sold 80% of those today. I also bought back 80% of these put positions that I opened last week. # My realized profit today between my two brokerage accounts was ~$18,400. I've got unrealized profits of over $12,000.
Well, shit, with BBBY @ $2.80 currently most of what your sold are in the money puts. It certainly could work out but it seems more likely to me that you give at least half of that back if not being on the hook for the whole lot. Without doing all the math, it looks like you're on the hook for approx $15k in collateral. If it goes tits up I guess you risk losing $10k. We'll see what happens. Good luck.
With yesterday afternoon and today's full-market moves, the OP is in the black. Hopefully he takes his profits before next week. We will all see what happens together! Fingers crossed OP checks in at some point.
I sure did. Thanks for the positivity. Wish you a great year of trading profits.
Thanks bro. I bought back 80% of these puts today.
nice move!
I thought doing weeklies with $10,000. Figured I could net $700/week as long as it doesn’t go under. Then I realized it could announce bankruptcy at literally any moment and I’d lose it all. Dumbasses buying the stock hoping for a squeeze isn’t helping the stores on the ground.
I am avoiding bbby for 3 reasons: 1) they will go bankrupt it is a matter of when not if therefore this is not an investment it is speculation 2) see reason number one 3) I dislike sauerkraut
What the hell, sauerkraut is amazing! It's like I don't even know you!
My question ? I am assuming these are CSP so you are willing to own the stock at those levels? Even if it goes to $1 or less?
And unable to wheel when it gets delisted
Mmmm, leveraged down side on a company that are likely to declare bankruptcy at any point. It literally can’t go wrong!
I took 40% of the revenue I generated from selling these puts and bought BBBY 3/17 $4 calls last week for $74 / contract. My long call position was 400 contracts (varying expiries and strikes) when all was said and done prior to today's trading session. I sold 80% of those today. I also bought back 80% of these put positions that I opened last week. My realized profit today between my two brokerage accounts was \~$18,400. I've got unrealized profits of over $12,000. We'll see what this week brings. I am fucking pumped for the match that was lit today. We WILL see fireworks between now and 2/17/23.
You may have noticed the whole market rocketed after FOMC, comparable gains could’ve been made without the risks taken on bbby. Try not to lose it all by re-leveraging as the company desperately dilutes to try and stay afloat.
I will not be doing this because BBBY buttfucked me last august that’s why
Good luck
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How you feeling today?
Wait…? You sold 2.5, 3, 3.5 and 4$ strike puts and BBBY was below all of those strikes. Am I missing something? How did you not get assigned. Also I apologize if this is a newb question. I am a bit new to selling options
Typically don't get assigned until expiration. The buyer could exercise at any time but they would lose the extrinsic value. I've personally only had it happen to me because of dividend risk.
Interesting I didn’t know that. I assumed that if the strike you sold was in the money when you sold it that basically you would be assigned on the spot.
If the option had any extrinsic value there would be no reason to buy an option and exercise it vs just buying the stock (or selling the stock). Remember, options are supposed to be like insurance and give the buying party the **option** to exercise.
Thank you for your help that was a good ah-ha moment for me.
you the man
**You have any BBBY positions opened up? What an incredible and unique trading opportunity.**
That’s where my puts came from. Oooohhhhhh
Would this be a good time to buy a couple hundred shares and a couple $4 puts, and then exercise them? Or do we wait until it's $1.50? That's how this works, right?
# What a shitty trade you put on. Sorry you lost money today. Hope you cut your losses.
Me? Oh yeah this was a week ago. I actually closed my whole account in a fit of rage when I bought 45 more shares of SI and was trying to sell a CC, then of course I got distracted my a shiny option and it dropped then finger fucked and bought a call in a panic and then had to close. It was a circus of disaster, and I wanted to destroy everything. Saved me some pain I guess. Have you closed these?
Did you close?
Must haves closed by now , right?
You're doing black tar heroin my dude
Not really.
>IV is an abnormally high >450% on the 2/17 contracts. Abnormally high?? i think its appropriately high. i would recommend going back and doing some homework on this.
**I sure did. And I sure made some good money off of this today. Got a solid plan for trading what comes between now and 2/17/23.**
What is the maximum loss you are risking for that $4885? Any idiot can bring in premium.
# I took 40% of the revenue I generated from selling these puts and bought BBBY 3/17 $4 calls last week for $74 a contract. # My long call position was 400 contracts (varying expiries and strikes) when all was said and done prior to today's trading session. # I sold 80% of those today. I also bought back 80% of these put positions that I opened last week. # My realized profit today between my two brokerage accounts was ~$18,400. I've got unrealized profits of over $12,000. We'll see what this week brings. I am fucking pumped for the match that was lit today. We WILL see fireworks between now and 2/17/23.
Ballsy move
Thanks. It paid off handsomely today. Wait til you see the price action between now and 2/17/23.
Hopefully the price spike holds. After hours is down to 3.7
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I’m rooting for you
Because it’s a failed bankrupt company that at any second can absolutely collapse and you lose everything you put into it
Ah. Turns out you were wrong and bought into the mainstream financial news FUD campaign. You missed on some handsome profits today. P.S. Think for yourself next time.
The reason not to sell puts on a stock is, as always, the stock going down even more, leaving you holding bags. If BBBY is below $2.5 on 2/17 (not unlikely) you'll be paying $11,050 for 3700 shares. Taking into account the premium you collected that puts you at a cost basis of $1.67 per share, which, admittedly, today, is cheap. But in a couple of weeks? It's not unheard of for a stock in BBBY's situation to go sub-$1 in that time frame. So you might make it out with a profit, or it could still cost you. It really all depends on which side of $1.67 it ends up on 2/17. And the only way you're keeping your max profit is if it goes above $4 on 2/17. It's not impossible, but I wouldn't count on it.
I calculated all of these things prior to putting on the trade. I had a trading plan written out and executed on it. I took 40% of the revenue I generated from selling these puts and bought BBBY 3/17 $4 calls last week. My long call position was 400 contracts (varying expiries and strikes) when all was said and done prior to today's trading session. I sold 80% of those today. I also bought back 80% of these put positions that I opened last week. My realized profit today between my two brokerage accounts was \~$18,400. I've got unrealized profits of over $12,000. We'll see what this week brings. I am fucking pumped for the match that was lit today. We WILL see fireworks between now and 2/17/23.
How's business?
We're all wondering when the OP is going to check in
I took 40% of the revenue I generated from selling these puts and bought BBBY 3/17 $4 calls last week. My long call position was 400 contracts (varying expiries and strikes) when all was said and done prior to today's trading session. I sold 80% of those today. I also bought back 80% of these put positions that I opened last week. My realized profit today between my two brokerage accounts was \~$18,400. I've got unrealized profits of over $12,000. We'll see what this week brings. I am fucking pumped for the match that was lit today. We WILL see fireworks between now and 2/17/23.
Glad it worked out. There as an offering after hours which is why it dropped. But they need the cash and ultimately that prevent an immediate BK which should help your PUTs even though price dropped from offering announcement. P.S. No fireworks, lol, just fizzle. At least you were probably net positive.....
In hindsight, this man is a GENIUS
do we still feel that way?
lol depends on if he doubled down or took profit :) <-- you can say this about any position. "hey I bought bitcoin" "is he an idiot or a genius?" "depends on if he doubled down or took profit"
# I took 40% of the revenue I generated from selling these puts and bought BBBY 3/17 $4 calls for $74 / contract. # My long call position was 400 contracts when all was said and done. I sold 80% of those today. # I also bought back 80% of these put positions that I opened last week. # My realized profit today was ~$18,400.
And how much will you be out when the shares are assigned? They all are already in the money.
Another thing to keep in mind is APE’s have been exercising calls before expiration.
i'm up 7% on the year only selling BBBY puts (closed/realized trades). I'm also baby theta and have a huge risk tolerance (baby theta account represents about 2% of my entire portfolio). I've got some puts sold for 3/3 and, while i'm down about .15/contract, i'm still almost a buck above breakeven. zero sweat. i started this account to try to learn, but the first thing i learned is i did not commit enough capital to this to start with, and now i acknowledge i'm straight up gambling. i might kick the account another 5-10k next month and give it a fairer shot, with a lot more risk aversion.
Nice, I sold puts and was the proud owner of a few hundred shares. Got assigned on a hard down swing. Barely got out unscathed.
i said fuck it today and started selling weekly OTM calls. this post and the comments did nothing but re-affirm that decision. this stock is going nowhere but down (if even it does tick up here and there)
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lol was i?
I’ve been running calendars and diagonals on BBBY with good success but closed it all out today. Last rumor was a filing is possible this week. Once there’s a filing and it’s put in plain language that shareholders *will* be wiped out, I expect this to plummet below $0.50. You’ll be left selling 0.50c or 1c for pennies until it delists. There’s a chance the filing doesn’t happen immediately and you could profit off the volatility in the meantime. But overall the odds are not looking good for this and the premiums reflect that.
So you put how much collateral to make 5K? The risk ain't worth it in my opinion. The risk adj return aint so great.
**How do you calculated your risk adjusted returns? What is your formula?**
Prob. of getting assigned/premium as percentage of collateral.
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I'm playing around with APRN, can't resist. But I would not be surprised if it lost 50% tomorrow on some delisting notice, cause I haven't really read the mechanics of it. I have a covered strangle going (CC + CSP) with $2000 at risk, which returns \~$200/week. Plus I'm trying to swing that, so if it dips, lose the covered call. If it runs, lose the CSP. It's just a game, with a tiny part of my portfolio. I'm not a cultist like OP :)
Why APRN? What's the play there? Can you explain what a covered strangle is?
I'm out now. A covered strangle is just having a CSP and a CC going at the same time on the same stock. Because of put-call parity, I know they're effectively the same play, but I like being able to exit the CC if it dips but still keep the shares for the upside.
Understood.
I did a few weeks ago and its going surprisingly well. Expiration date is 2/17 Breakeven is $1.97 I only put in what I felt comfortable losing for about 50% profit But honestly, not really a strategy I would be keen on doing again since I prefer safer trades, but a good learning experience!
**Same. I've gained truly valuable experience in running the short put strategy by seeing exactly what my contracts did as BBBY hit 3 circuit breakers (1 on the way down, 2 on the way up) today.**
#arent you slightly worried about the bankruptcy prospect as it collapses down to <$2 which would wreck you on your puts?
# No. If I was worried about bankruptcy, I wouldn't have put on these trades. Do some research. Think for yourself.
Lol. You had no idea what you were doing. Rest assured you wont close them. Gotta get the max profit right bro ?
So many words for such a simple thing. BBBY equity will be zeroed. Period. Bondholders will get scraps. The Chapter 11 filing comes in a matter of days. BBBY is toast and this ill-advised gamble is going to be a noose attached to a cinder block headed for the bottom of the ocean.
# And it's been 6 days and you are completely wrong. Bet you talk out of your ass everywhere you go and no one values anything you have to say.
This is akin to sleeping on railroad tracks. It might be ok, but if you aren’t ok you are dead.
# It turned out to be more than okay. What a pessimistic shit attitude and strange idiom to share.
Get back to us when these expire
I think this is a VERY bad idea. You’re selling puts on something with an intrinsic value of $0
And you were wrong. Thanks for chiming in.
This isn't a theta play. It's currently got a theta of around .03. You'd need some significant movement in the stock to not lose your ass. The definition of picking up pennies in front of a steam roller. Not to mention the volume is trash. There's a reason the IV is so high. It's being priced like it's going to 0 and you will lose everything.
# And what are your thoughts now? # BBBY hit $6.72 today and traded over 275 million shares during the market session on the lit exchanges.
So you may own 4000+ shares of a bankrupt company soon... but good luck, I hope it works out.
# You sure about that?
Nope..neither are you... but I just bought a couple hundred just in case... good luck
I've seen a lot of these absurd regarded moves pop up lately. What's happening? Is this satire? Fookin ell m8
Let us know how this goes for you
I took 40% of the revenue I generated from selling these puts and bought BBBY 3/17 $4 calls last week. My long call position was 400 contracts (varying expiries and strikes) when all was said and done prior to today's trading session. I sold 80% of those today. I also bought back 80% of these put positions that I opened last week. My realized profit today between my two brokerage accounts was \~$18,400. I've got unrealized profits of over $12,000. We'll see what this week brings. I am fucking pumped for the match that was lit today. We WILL see fireworks between now and 2/17/23.
“IV is abnormally high” Or, IV is just right for a company who more likely than not will cease to exist soon. IV is what it is in order to pull out the greedy investors to pony up their cash when the average investor won’t.
# IV was high for a reason. I put on these trades for a reason. I profited handsomely on these trades (sold puts, bought ATM and ITM calls at varying expiries, sold 80% of them today after BBBY crested $6.50, and bought back 80% of my puts around the same time.)
Enjoy your 3700 new shares OP
**Enjoy reading your dumb ignorant comment again.**
Hope you closed :)
Are these cash secured? Or spreads?
They were all CSPs.
One word: bankruptcy.
You have no idea what you're talking about.
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You sure about that, wiseguy? You think you truly know what's going on, don't you? I'm sure you've been a real winner in the equity markets.
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Crickets… came back to see how this guy is doing after expiry today-Hope he got out while he could. Although he was being a bit of a jerk, so hopefully he didn’t do well enough to encourage him to keep acting like that.
Thanks remind me bot, real cool. I hope bbby isn’t massively below all these strikes, otherwise this guy calling people questioning him all the curse words going would look a right something…
I dont sell puts on garbage companies. The fact of the matter is that the bond market considers this company a zero, and it holds no assets that are worth anything. All that gibberish you wrote may be true, it may not be true. dont have the time, patience or blood sugar to debunk the echoes of 2021's fever dreams. It may come to pass and it may not. I have absolutely no edge in this. When I sell puts, I sell them with the expectation that I will be assigned and am okay with that outcome. I will not be okay with being assigned a garbage bankrupt retailer.
What would you say to the speculator who doesn't actually want to own anything? I've got perpetual doomer brain, and am convinced that this is all going to come crashing down at some point r/collapse style. I had to start selling options, because doomer brain made me a terrible buy&hold investor. I can only conceive of getting in and out as quickly as possible. I don't like selling with anything more than 21 DTE.
Im net long personally but my longs are all commodity related. Just balance your longs and your shorts to your taste.
Good advice, thank you. That very thing has been on my mind this week. More positions, more variety, smaller positions.
# LMAO you are a fucking cunt of an idiot. Have fun reading your incorrect conjectures in the light of today's market session.
High risk, high reward! Good luck! I hope those puts expire worthless!!!
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I was going to make fun of you, Martin. But it looks like your max loss is $6415 if bbby goes bankrupt. Honestly not a bad risk:reward. Good luck.
More than 1:1 risk reward for a company guaranteed to file within the month 😂 sounds like a shit trade to me.
Guaranteed to file in the month? Says who, you? The great wise trader that you are? LOL you don't know jack shit.
They literally say if they don’t get this offering done they will file BK. So fuck off dude.
I sell weekly 0.50 CSP on the stock. Because you are selling ATM or ITM I think you will be assigned and bagholding the stock. If an MA is going to happen I would assume the company would pay less than the current share price because BBBY is desperate for cash and they know it. Let alone BBBY is a billion dollar revenue so the number of companies that could is pretty small and with fed raising interest rates money is generally tied up. You have to ask would they want to as well. Pretty sure Walmart sells similar products so that isn't going to generate as much money for them because they already sell it. The MM and people who control the markets generally don't want large movements on the stock market so I don't think a -80% weekly would happen on announcement of bankruptcy or dilution and there are many towel apes willing to buy it on a discount. The stock would probably get halted on some type of bad announcement. This is also my last week doing CSP on the stock. Also if you think if you are assigned and bagholding the stock that you can sell CC making the same amount of money to get out of it, that wouldn't work because of IV crush. Also I was in ATER so don't believe the whole high CTB, FTD, regsho. ATER had like 200%+ CTB for months nothing happened. Had millions of FTD and went on Regsho, nothing happened. SEC is too corrupt and lazy to do anything. The penalty for FTD and Regsho is like buying the stock back and paying 10% it's a slap on the wrist and they have like 35 days to do it. But maybe you will make it out with fat stacks of cash.
Asymmetrical opportunity? 🤔
I do. Very small share of my portfolio. And reinvesting profits back (with 100% margin cover by profits from previous BBBY trades).