Summary: picking through the garbage to see if any value left for future. bankruptcy or big move in 5-10 years. Rolling short puts into stock for potential change based on new catalyst of joint venture.
key concepts: Sizing- Having enough but not too much of an investment idea in a portfolio. Risk/reward- Assigning probabilities to various up and down scenarios. Choosing exposure based on opportunity. Expected returns- Factoring most likely outcomes of decisions and positions. Long options vs stock for example. Survivability- Choosing a trade structure or vehicle that allows ability to endure wild adverse moves.
FATSO- 5 level of analysis acronym. F- fed not pivoting yet, but hints at easing and market likes that. A- accounting wise plby is beat up and priced for potential bankruptcy at low price/sales, price/book. T- Technical trend shows its still in downtrend, some volume accumulation, way below 200 day ma S- social sentiment, used to be popular meme stock, some young crowd still follows, did nfts so associated, low hype now 0- options view is still very volatile, high IV, stock price is so low that trading the options doesnt make much sense
*stocks below 5$ are penny stocks, so many institutions cant even hold the shares if their mandates wont allow.
warning: penny stocks are risky and will lose you money. this is not advice. you will lose money.
Dear god, almighty. I had no idea they were publicly traded!
optionfarmers
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@w2p28vrr2c, lol nice. you should watch some of the videos on youtube over the last year by guys who were hyped and optimistic. its kind of a mess.
w2p28vrr2c
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@optionfarmers that doesn’t surprise me at all. Just recently, the girls from that show “the girls next door” came out with there own podcast..
I have to admire Hefner. That dude had some balls… and got away with it lol
optionfarmers
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@w2p28vrr2c, def an icon. apparently plby brand is pretty well received in china. didnt know about the podcast, thanks.
w2p28vrr2c
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@optionfarmers that may be so; but let’s be honest, technically the chart looks prime for a reversal; however, the fundamentals aren’t there. They may take advantage of a meme type status, but ideally, we want a better risk/reward.