Mikebike
Short

Short CGC here for $34-36 target

NYSE:CGC   CANOPY GROWTH CORPORATION
CGC has been rejected in the area $50-55 multiple times and has started to trend downwards. We can also see a decrease in volume and downward-trending RSI , which jointly indicate a bearish move. We bought some Oct 19 $45 Puts which should lead to 200-400% profit upon reaching of $34-36 in the next 1-2 weeks.
@Mikebike Hi there, I just have a few questions about strategy here, Im trying to wrap my head around options. Are you conducting a buy put or sell put here? Is option terminology the same as buy (long) / sell (short) ? APologies if these questions are too noob.
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The_Real_AMF The_Real_AMF
@Mikebike ALso, thanks for the TA!
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Mikebike The_Real_AMF
@The_Real_AMF, It's betting on the price to go down. So either short sell stocks or buy put options, both of which would lead to profit in case of declining shares. Note that the bears got rejected at $45 and price went back up to $49. I would observe whether the bulls get rejected at around $50 or not and then decide whether to short. It's possible that we're now looking at a head and shoulders pattern (price would first go to $54-55 before going down) or that it's an increasing triangle (we might break out to the top and form a new high in the $60-70 area).
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@Mikebike, Thanks for the information! I guess I was just a little confused about what the difference between buying/selling a put/call. I think I have a better understanding of it now.
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Mikebike The_Real_AMF
@The_Real_AMF, Still think it's more likely to go down, but it's possible that they pump the stock more until Oct 17 when the Canadian legalization happens and then they dump it on mom and pop investors when it's all over the news like they did it this summer.
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Mikebike The_Real_AMF
@The_Real_AMF, Also posted an update:
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@Mikebike, Thanks for the continued updates regarding this story! I really appreciate your insight
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A convincing break above $55 would invalidate this trade
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