Every sign points to 40

15 Nov 2019

On a shocking earnings beat it isn't surprising to see a price increase as drastic as was seen Tuesday morning. Looking at return on investment, earnings in general, and analyzing the company I come to find that with a low margin of operation it has managed to build a bit of a bubble since it's IPO. It has managed to decrease the amount of debt that it has and I am not saying that this is a poor company by any meanings (Many hedge funds have been bullish on it in the past two quarters). J.P. Morgan just downgraded from overweight to neutral indicating that they no longer feel that the stock will continue to rise as sharply as it has. How many stocks can be valued at 9.80 and manage a 439% gain in 11 months? Not a real company. Some of their partners deem promising revenue in the future. But this company is still net negative and their return on investment is not well. I do not see a price higher than 65 before plummeting to 40(analyst consensus deemed 39.2). I have two puts set to about christmas. After said dip I will watch for an opportunity to go long if trade outlooks are well.

19 Des 2020

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I was very new to trading but I was not wrong about this bubble! Which was actually the bad thing as early on I need to learn the lesson:

People who spot bubbles are in a terrible situation.

They refuse to buy it because they don't want to lose money and simultaneously feel a stupid eagerness to buy puts :). I lost 320$.