Betting against BYND.
music selection: “One” — Creed
weigh-in: 208.2 +0.6 – broke an 11 week streak with too many tamales.
Beyond Meat (BYND) makes plant based meat substitutes. It had a hot IPO after getting its product in major grocery chains and even some major fast food chains. Soon the novelty wore off, leaving the company to struggle on the top and bottom lines. The stock is down more than half since its post IPO high. Year to date it is down as well. I think the weakness and trend line suggests a good short term bear put spread play.
With shares trading at 102.97, I bought the 105/110 bear put spread for 3.192 per share across 15 spreads. I put 4,788 in capital at risk over 33 days. The trade enjoys 1.97% downside protection against an upward move in price. Should that not be breached, I will earn 2,712 in profit which is good for 56.6% or 626% annualized.
Among five spreads that expire this Friday, two are at risk after the recent sell off. I’ll be looking to exit those two gracefully. Sadly, I’ve gone from expect 5 digits of profit for the month to a narrow loss.
Devour your prey raptors!