I am shorting WING via Put Options expiring in July 2024.
Here is why:
- Overbought chart with RSI bearish divergence on the daily - Retail activity increased more than 100% compared to D-7, D-14 and D-28 === FOMO - Price closed green for the day, 7 days in a row - On the 21st of Feb, the company released very good earnings but the price dropped -4.36% despite the good news and good forward outlook == news failure ; later last week, the price rallied back up (so did the entire market) but it looks to me like an exhaustion rally illustrated by a potential exhaustion gap printed on Thursday (daily chart). - At the time of writing this idea, the company's PE ratio is 144.80 according to Yahoo Finance which is beyond extended...
AND VERY INTERESTINGLY >>
- On Friday, while the market rallied and retail investors were pouring in from all sides: INSIDERS SOLD SHARES including the CEO (about 11000 shares) and 2 Directors (about 2500 shares). Why would 3 different insiders sell during the biggest rally of the year, at the same time?
Those are the reasons why I am short, and will continue to add to my short at any price increase.
"Subway has been sold for billions in one of the biggest fast food acquisitions ever
Subway listed themselves for $10 billion. Roark Capital offered $9.6 billion, according to The Wall Street Journal."
SUBWAY HAS 44,00 STORES AND IS WORTH 10 BILLON
WING HAS 2000 STORES AND IS CURRENTLY WORTH 10.75 BILLON
Why in the world would you be a buyer at this insane valuation. This is the next CARVANA see you at $6.
marketchan
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@orirosenkrantz, yes I am still short, out of the money, but holding this short. There is no realistic scenario where this company is worth its current valuation.
Closed out @ 357 made $1000 got an order to buy in again when it reaches my put price again. This is clearly high manipulation and it may take time to really come down but no reason not to make money along the way.
"Subway has been sold for billions in one of the biggest fast food acquisitions ever
Subway listed themselves for $10 billion. Roark Capital offered $9.6 billion, according to The Wall Street Journal."
SUBWAY HAS 44,00 STORES AND IS WORTH 10 BILLON
WING HAS 2000 STORES AND IS CURRENTLY WORTH 10.75 BILLON
Why in the world would you be a buyer at this insane valuation. This is the next CARVANA see you at $6.