Trade Alert

Betting against a stock that has more than doubled YTD despite terrible fundamentals.

Betting Against A Former Meme Stock

At the end of Tuesday morning’s post, I mentioned my game plan for Tuesday’s CPI day: if inflation came in hotter than expected, and the market rallied higher, I planned to add a new bearish position, and if the reverse happened, I might exit a previous bearish bet. In the end, the market’s response to the mixed CPI data was relatively muted, and I didn’t place any trades on Tuesday. I did just place one now though.

This trade is against a former meme stock, one that has more than doubled year-to-date, despite having these fundamentals:

One difference with this trade is that we’ll know if it has worked by the end of the week. Details below.