CVNA $25 07/01 puts, bought twelve contracts yesterday at $0.35. Sold 6 today at 0.70 to get my initial investment back. It crashed harder than I expected now the contracts are at 1.30. What does WSB suggest I do? Hold? And general thoughts on cvna this week?
First day in a long time I was solidly green and not fukin rugged mid-day with my pooties- drivern primarily with the continued weakness in shit growth stocks (e.g. RBLX, CVNA, COIN, UPST). Not sure if it will last but, its nice to see a win in the port after many, may a days. Mostly all long dated puts so I can handle some chop. Also getting paid on friday so will have another couple grand to leg in. Heres to hoping for the downturn to begin sooner than later
my thoughts, exactly. I was looking for the new CEO to deliver on his promises of more efficient operations and higher margins, and he did. It lost revenue but now has a proven new model more efficient than CVNA, so why not invest in them? lol. This was my reasoning anyway, and their revenues are 1/9th of CVNA yet MC is 1/40th
BBBY is popping off, but behind it is a series of high short interest names ([REV, NVTA, BYND, MSTR, CVNA, etc](https://marketrebellion.com/its-a-short-squeeze-market-top-10-most-shorted-stocks-in-august-2022/)) that are quietly ripping.
Look at companies like BBBY and CVNA. They're practically bankrupt, yet their stocks have soared in just a month. They're up e.g. due to unwinding short positions. Same unwinding is happening to all stocks, when investors have been short the whole index. The remaining stocks either get pulled with or not. I would personally sit this one out until there is a correction. Likely direction is down now.
I honestly don't feel strong about anything at the moment because we have had a good run. Made money on my W, F, and CVNA options selling them early in the week and tried to buy them back when the market noise dived but the orders never went through. I have no position in SIX but it looks good to me at these levels. Still like CCL, RCL and NCLH for a turnaround by end of year.
Oversold on market data, many shorts still in the black, but late to the party players got burned, as they do. But yeah, easy to predict it would bounce when it sat in the 20's because CVNA shrugged off losing 50% of their market cap only to spend 2.2B on an acquisition because their underlying business was doing fine, but bear will bear and piled on... like always... because they thought a bank having $2.2B of confidence in a company is bad news and used cars were expensive
I sold off my contracts but I agree, there will be more squeezing ahead for CVNA shorts. Carvana's management keep getting in their own way so I wouldn't be surprised if they do a secondary offering to raise cash but ultimately, the company will be attractive again. Where I really screwed up was selling my 55 dollar strike August 19 Wayfair (W) calls too early. W had been down so low that I jumped at the opportunity to sell with a gain but it kept right on going and is over $71 now. I'm happy for those you got in early with BBBY but calls are too pricey for me now.
I mean ya if u put ur $50 allowance in 0dte puts ur fucked as you would be on 99% of picks lmao. You always want puts during a squeeze, fuck premium. Buy me a month or 2 out and it’s free money (CVNA, AMC, DKNG, AFRM)
No, for start, I can post it here, no rules against it. Secondly I buy meme shares as well just not showing in this account. My Tesla gain is 700%, and CVNA is around 100%. There is not much difference between you and me, I just hold it little longer. I never say that you can’t go for GME or others, just don’t put all you money into it. Besides, as long as it can make money, who cares how the fuck you did it?
Earnings are funny right now. If you’re devalued , beat up, nothing to lose - your stock will fly - that’s earnings 2022. Go figure . BYND , CVNA , etc - short squeeze emanating from one decent piece of guidance . How that supersedes lousy fundamentals , your guess is as good as mine . With regard to your problem there’s a few things . You can sell an ATM call , pocket a big premium and let someone else have the stock . You can roll but roll up and out not just out. What if it does go up on some niblet of guidance . You are right back where you are . Remember when you roll you are closing - that costs money . Is the premium worth it ? Here is a play from the Oracle of Omaha playbook . You sell CC ( roll up and out) and at the same time sell Cash covered puts. It’s a condor of sorts - a synthetic with a sweet spot - you pick a zone where RBLX will stay say above 53 and below 43. That 10 difference is your sweet spot. You will get 2 premiums. You can get assigned on the CC or get the stock pushed in you at a low rate . If it stays below 53 but doesn’t hit 43 you win 2 premiums . If it stays above 43 and below 53 you win 2 premiums If it goes above 53 you keep 2 premiums and get assigned . Wipe your hands you’re done If it goes beneath 43 you keep two premiums and use sone of it to buy the stock back cheap . You are the proud owner of RBLX at 43 less the two premiums . It’s a winning strategy - you might want to put it in your playbook - Warren did.