WK

Garbage stock, flat revenue and loss

Trade active:

Dumped my $40 Nov and $40 Jan puts I bought last week, still have $35 Nov puts I bought pre-earnings. Was hesitant to sell the Jan puts, but you can't pass up on a huge 2 day profit.

I'm guessing it'll bounce later this afternoon, but kept the $35 puts anyways since I'm up big. Can't believe they jacked this up after earnings, but I'll take the money.

Comment:

Found some support at the gap but no traction even when the market goes up.

Still holding Nov $35 puts, ya figure it has to close the gap at this point. Might just hold it until expiration, unless we see $32 - 33 range.

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Gap closed, faith in market restored. Probably selling the Nov puts tomorrow and rolling into Jan $35 puts. No compelling reason for this stock to go up when the Feds increase rates in December, which undoubtedly will cause another selloff if the market goes up between now and then.

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Waiting to see if this heads back up to 440, if it does buying Jan $40 puts. December rate increase will tank it right back to $32

Trade active:

Bought some Jan 35 puts this morning with profits. I think the bounce is over though the last time it bounced for 4 days. Will buy Jan $40 puts if it gets to 40.

If the market bounces up, it'll tank again with the next rate increase in Dec. Buy Jan puts when shorting.

Comment:

I thought this stock looked familiar, it has the same pattern as FC. Pumped up on business cloud software hype, then the hype fades when the company can't make money. Eventually this will cover that $25.4 gap, certainly will retest $32.

I'm guessing the market goes up next week, for sure on the short day.

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Flipped half of the Jan $35 puts this morning, worst case scenario now is that I break even. Will hold until $25.4 gap close or expiration.

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Added more Jan 35 puts today, no volume. Goes down with the market but not up. The ratchet effect shows a lack of interest.

There is the off chance that it will throw a very long bear flag, FC bear flag lasted 6 weeks, hence Jan puts. Remember the rate hike in December.

Comment:

Why is a money losing company with no growth over the last 3 quarters priced at 7x P/S ratio? I have no idea. This stock will be trading in the single digits when the bubble is over, but that might take a couple of years.

Trade closed manually:

It's been fun flipping puts on this garbage, but with the market tanking, it makes more sense to flip puts with more liquidity.

I'm buying puts before next earnings, book it.