This BUD has been tainted - the case for short selling BUD
I wanted to present to everyone the reasons why we like short selling BUD including the use of long put options
The first and primary reason is because of the risk/reward ratio. The risk-to-reward is 1 to 15, even though there is never a risk free trade, BUD went into such an overowned or extended price placement that it would be difficult to sustain such momentum
In this case we have 1000 shares short to (1) allow for 10 call options in case the trade does not go our way - the no loss rules applies to all trades
Here is the reasonsing for publishing this idea
PRESS THE PLAY BUTTON. The feedback about the efficacy of this trade matters.
(1) to allow for the play button to validate our idea, in time winning trades should be seen
-A heavy short sale like this can be covered in several different locations, that is the targets that we laid out on the chart 61, 58, and 52 or 51
-The stock recently traded in an overbought territory from early 2022; namely at a time when the market was peaking for January/February of 2022
-there have been many upside gaps along the way up they tend to fill
-at the moment price is very high above its moving average and stocks do show a tendenncy of reverting back to the mean
-the longer term equilibrium is near 50 and the news flow will not be very positive to its customers about its insane marketing campaign, the company will have to do a lot to repair its reputation after recent events
I placed an overall target somewhat close to price because drink stocks tend to do well even in light of blunders like recent times. There is always room for improvement, and we are enthusiastic about showing the results as they come in.
The first and primary reason is because of the risk/reward ratio. The risk-to-reward is 1 to 15, even though there is never a risk free trade, BUD went into such an overowned or extended price placement that it would be difficult to sustain such momentum
In this case we have 1000 shares short to (1) allow for 10 call options in case the trade does not go our way - the no loss rules applies to all trades
Here is the reasonsing for publishing this idea
PRESS THE PLAY BUTTON. The feedback about the efficacy of this trade matters.
(1) to allow for the play button to validate our idea, in time winning trades should be seen
-A heavy short sale like this can be covered in several different locations, that is the targets that we laid out on the chart 61, 58, and 52 or 51
-The stock recently traded in an overbought territory from early 2022; namely at a time when the market was peaking for January/February of 2022
-there have been many upside gaps along the way up they tend to fill
-at the moment price is very high above its moving average and stocks do show a tendenncy of reverting back to the mean
-the longer term equilibrium is near 50 and the news flow will not be very positive to its customers about its insane marketing campaign, the company will have to do a lot to repair its reputation after recent events
I placed an overall target somewhat close to price because drink stocks tend to do well even in light of blunders like recent times. There is always room for improvement, and we are enthusiastic about showing the results as they come in.