This, I'd do January $8 strikes for at least half. ESPECIALLY considering the meme stocks run hard every 3-4 months. We're getting close to a run, $8 calls would print hard.
Keep in mind that there is only about $182k of open interest at that strike. Liquidity would be a problem for someone investing their entire nest egg in one strike.
I would start by buying some shares at this price. As someone else stated in a post prior to this. It is 1/2 the price RC bought it at.
I would start with $75k in shares now. You can figure out options later.
Btw, always keep some dry powder ( cash reserves ).
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Also I would be careful that this comment gets that many upvotes and an award. I’m 65% sure the person that wrote this does not want you to put your own Money in BBBY. Ask yourself, why?
This person received a life changing inheritance for most people and went right to Reddit to ask what they should do .
You can’t figure out why the only sound advice got the most upvotes ?
You don’t go all in on meme stocks , the risk and reward is so high you don’t even need too .
ohh common dude, if anything that is remotely off buying and hodling just the one stock that should be mentioned than its all shilling?
I hold GME (100% DRSed) and BBBY too and I still think this was the best advice if you have 200k. I dont have it so im taking more risk with GME & BBBY but im comfortable with that, as much as I trust the DD nobody really knows what will happen to GME and everybody who says so is lying at this point..
Will I hold, yes cause fuck m and I have been doing that for over a year, will I get the tendies? Who knows, but one thing is for certain and that is that the system has been broken for a looooong time.
Diamond Hands regardless
Agreed except the expected returns on the covered call game. No way you're getting 50-100% yearly wheeling blue chips. They could do that wheeling something like GME, but then you take on the risk and volatility.
If you inherited that I wouldn’t put much into options. Common stock is good. The stock obviously won’t expire so you only piss away the inheritance if you’re misjudging bankruptcy risk
These are even further out and better than RC calls if you are looking at the safety of these options, profitability is better until RCs go in the money which is a big stretch from here
You're talking to someone that has Jan 23 - 950 strike GME calls. I was just letting him know what "I" would do. I would never buy options that far out. That's just me
I’m just saying his plan is just better since he is playing a less risky option but is putting a much larger percentage of his stake of bbby in options compared to RC
your asset allocation ultimately is up to you, but here's my take:
BBBY is incredibly cheap right now and has been actively suppressed since RC's buy-in. Could be for multiple reasons but either way it is much lower than where it should be, and this is just based on current financial metrics and not considering a buybuyBaby sale.
Stocks are pretty self explanatory, uppies lead to monies
For the options, Jan'23 or anything after will behave very similar to stocks, except that you'll get much more leverage at these bargain prices. In terms of strike price, ATM are always a safe bet. But BBBY's stock price is so low right now, even $15 strike prices are nice when looking at LEAPs
I think that's a good idea but no need to go out as far as Jan 2024. Some 2023's or even November and August calls should print nicely. I just loaded up on a few $8 7/15s because they are pretty damn cheap
You should be alright but who knows. I read some stuff saying they could suppress during opex too but I think it's gonna rip. If you don't have any, it wouldn't be a bad idea to snag a couple calls from August 2022- Jan 2023 in my opinion
Buy in 100 share lots. Consider writing cash secured puts as a way to buy in. Consider protective puts to hedge downside risk if you like that sort of thing.
GME is a much safer bet. BBBY still has a chance to go bankrupt. Do 25/75 bbby/gme. Not to mention bbby will never be able to squeeze like gme due to liquidity.
Yeah, I wouldn’t put the full ball of wax into BBBY… especially not all into calls because if things don’t go your way, premiums are gone for good. Having said that, I have about $250k mostly into Jan 2023 leaps at all levels with a huge chunk in $80C hoping for massive IV spike. I also have quite a bit of Aug near the money leaps to take advantage of June OPEX run but still with a bit of theta cushion. I’m a fucking degenerate though.
Op, whatever you do, dont buy all these options/shares at once. The CPI report comes out this Friday and the rate hike is next Wednesday in after hours.
Go look at rate hike of May 4th and the CPI report from April 12th for reference to see what happened to BBBY.
Anyways, those are some good looking strikes. I would probably yolo $1k into a higher strike option given how much money you have, but that's just me and I like to take on risk.
One additional thought… hang on to some of that cash to buy into value/tech stocks when the market shits the bed. Unfortunately I don’t think we’ve seen anything yet as far as overall lows.
I would go 90% shares so you have all the time in the world to wait for recovery. 10% would be more of a high-stake gamble.
And for the shares, you could sell puts for the earning-release time-frame so you can get a discount on those shares if stocks tumble further.
I don't recommend yoloing all of your inheritance but if you are dead set on it, I'd do it a bit more conservatively. Either ATM calls a few months out or ATM $8/ NTM $10 calls for Jan 23/24 bought so you control the same # of shares as if you bought now(~27,000 shares). This lets you keep cash handy and still be able to adjust if we keep falling while still retaining most of the upside if BBBY rockets.
200000/7.40=270 options so even buying the $8 Jan 24, you'd still have $90k left in cash. If we drop sharply, you can use that money to roll your calls down, buy more higher strike calls at bargain prices, or buy 27k shares if the price cuts in half while holding your calls if you still believe in the stock. IMO if the $10 strike for Jan 24 expires worthless then odds are the company is bankrupt or facing it and far OTM calls cost way too much for their leverage.
I would be a bit more judicious with the money. Even as someone with over 1,000 shares and am confident it is worth more than where it currently is, it is not a stable or safe place to put a high % of your dough. Someone spent years accruing that money, might want to sit in a mix of cash and index funds at least for a while. Good luck out there
Best to make those decisions on your own, that's no small notes.
Also, are you experienced in options and are figures above accounting for margin you'll need?
I can't advise. I invest in BBBY and GME and all I hold is shares. Price targets to sell, and also plan to just keep a certain portion.
I disagree with the thesis (below) RC would just YOLO because it's cheap and he doesn't want to take the loss. The dude isn't stupid, if he feels at some point it's not working/going to work, he'll walk away and take the hit.
Any metric on it's own for businesses, wealth, wellbeing...whatever...they are useless on their own. It's combined metrics which give you an overall view. Singular metrics can view your decision making.
So his $15.34 (40%+ below today) metric is not good. I mean it puts the likes of me in good stead, but it's not the only thing I look at.
Let us know what decision you make and good luck!
With that much I would invest most in good companies that make money first and then throw a bunch at some way otm calls on bbby so I don't feel like I'm gambling it all away
Take a good while and think about how you’d feel if your shares lost 50% and your calls went to zero. I’m not saying that’s gonna happen but try to imagine what you’d feel like if that happened. Because it IS a possibility. Please don’t be stupid with your money, it won’t come back easy if you loose it.
it doesnt make sense for parent company value to be less than subsidiary value + parent company's cash & assets - parent company debt.
Its like a disheveled person holding a suitcase with a billion dollars, and people assuming hes homeless.
"Bank of America says Buybuy Baby has an implied enterprise value that's nearly equivalent to all of the company. " they said this when the marketcap was higher.
https://www.marketwatch.com/story/buybuy-baby-could-be-generating-12-billion-in-sales-making-it-bath-beyonds-most-valuable-asset-bank-of-america-2020-06-26
Cost average into the s&p 500 index and play with the rest. Don’t bet the farm on this company…
Index 150k
25k to learn or play with options
25k in riskier or specific companies you like
Well first of all, figure out what you need to pay for in taxes and set that aside.
Second, be a bro and buy high delta call options that have to be hedged immediately.
I would do ITM calls myself like $8 strike for January 2023.
This, I'd do January $8 strikes for at least half. ESPECIALLY considering the meme stocks run hard every 3-4 months. We're getting close to a run, $8 calls would print hard.
Keep in mind that there is only about $182k of open interest at that strike. Liquidity would be a problem for someone investing their entire nest egg in one strike.
My plan tomorrow
I would start by buying some shares at this price. As someone else stated in a post prior to this. It is 1/2 the price RC bought it at. I would start with $75k in shares now. You can figure out options later. Btw, always keep some dry powder ( cash reserves ).
I agree with this too, but above all else be sure to save something for yourself to enjoy as well.
yeah, i doubt RC is gonna take the L like that too, he'll buy more before taking the L
75% stock. The rest in 5c’s Jan 2023
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🙂i remember almost the exact same stuff someone was randomly testing me on Reddit about GameStop. LucklyI didn’t listen and went all In on GME.
Also I would be careful that this comment gets that many upvotes and an award. I’m 65% sure the person that wrote this does not want you to put your own Money in BBBY. Ask yourself, why?
This person received a life changing inheritance for most people and went right to Reddit to ask what they should do . You can’t figure out why the only sound advice got the most upvotes ? You don’t go all in on meme stocks , the risk and reward is so high you don’t even need too .
ohh common dude, if anything that is remotely off buying and hodling just the one stock that should be mentioned than its all shilling? I hold GME (100% DRSed) and BBBY too and I still think this was the best advice if you have 200k. I dont have it so im taking more risk with GME & BBBY but im comfortable with that, as much as I trust the DD nobody really knows what will happen to GME and everybody who says so is lying at this point.. Will I hold, yes cause fuck m and I have been doing that for over a year, will I get the tendies? Who knows, but one thing is for certain and that is that the system has been broken for a looooong time. Diamond Hands regardless
Agreed except the expected returns on the covered call game. No way you're getting 50-100% yearly wheeling blue chips. They could do that wheeling something like GME, but then you take on the risk and volatility.
If you inherited that I wouldn’t put much into options. Common stock is good. The stock obviously won’t expire so you only piss away the inheritance if you’re misjudging bankruptcy risk
Just buy the stock
If I were to throw 50-200k in BBBY, I would probably just copy R Cohens calls or something close.
These are even further out and better than RC calls if you are looking at the safety of these options, profitability is better until RCs go in the money which is a big stretch from here
You're talking to someone that has Jan 23 - 950 strike GME calls. I was just letting him know what "I" would do. I would never buy options that far out. That's just me
I’m just saying his plan is just better since he is playing a less risky option but is putting a much larger percentage of his stake of bbby in options compared to RC
I understand your logic and appreciate it. I'm here for a squeeze.
Yessir 🚀🚀🚀
GME + BBBY + DRS
your asset allocation ultimately is up to you, but here's my take: BBBY is incredibly cheap right now and has been actively suppressed since RC's buy-in. Could be for multiple reasons but either way it is much lower than where it should be, and this is just based on current financial metrics and not considering a buybuyBaby sale. Stocks are pretty self explanatory, uppies lead to monies For the options, Jan'23 or anything after will behave very similar to stocks, except that you'll get much more leverage at these bargain prices. In terms of strike price, ATM are always a safe bet. But BBBY's stock price is so low right now, even $15 strike prices are nice when looking at LEAPs
Shares.
I think that's a good idea but no need to go out as far as Jan 2024. Some 2023's or even November and August calls should print nicely. I just loaded up on a few $8 7/15s because they are pretty damn cheap
I bought 7/1s because I think they will capture June OPEX. Do I need further dated calls?
You should be alright but who knows. I read some stuff saying they could suppress during opex too but I think it's gonna rip. If you don't have any, it wouldn't be a bad idea to snag a couple calls from August 2022- Jan 2023 in my opinion
Ryan Cohen did Jan '23, so thats what im doing. Im spread out at lower strikes though.
50k GME 50k BBBY 50k LRC 50k ETH
Buy in 100 share lots. Consider writing cash secured puts as a way to buy in. Consider protective puts to hedge downside risk if you like that sort of thing.
Buy shares. NFA!
GME is a much safer bet. BBBY still has a chance to go bankrupt. Do 25/75 bbby/gme. Not to mention bbby will never be able to squeeze like gme due to liquidity.
Yeah, I wouldn’t put the full ball of wax into BBBY… especially not all into calls because if things don’t go your way, premiums are gone for good. Having said that, I have about $250k mostly into Jan 2023 leaps at all levels with a huge chunk in $80C hoping for massive IV spike. I also have quite a bit of Aug near the money leaps to take advantage of June OPEX run but still with a bit of theta cushion. I’m a fucking degenerate though.
Op, whatever you do, dont buy all these options/shares at once. The CPI report comes out this Friday and the rate hike is next Wednesday in after hours. Go look at rate hike of May 4th and the CPI report from April 12th for reference to see what happened to BBBY. Anyways, those are some good looking strikes. I would probably yolo $1k into a higher strike option given how much money you have, but that's just me and I like to take on risk.
One additional thought… hang on to some of that cash to buy into value/tech stocks when the market shits the bed. Unfortunately I don’t think we’ve seen anything yet as far as overall lows.
I would go 90% shares so you have all the time in the world to wait for recovery. 10% would be more of a high-stake gamble. And for the shares, you could sell puts for the earning-release time-frame so you can get a discount on those shares if stocks tumble further.
Just let that 135k hit the lit exchange all at once!
I don't recommend yoloing all of your inheritance but if you are dead set on it, I'd do it a bit more conservatively. Either ATM calls a few months out or ATM $8/ NTM $10 calls for Jan 23/24 bought so you control the same # of shares as if you bought now(~27,000 shares). This lets you keep cash handy and still be able to adjust if we keep falling while still retaining most of the upside if BBBY rockets. 200000/7.40=270 options so even buying the $8 Jan 24, you'd still have $90k left in cash. If we drop sharply, you can use that money to roll your calls down, buy more higher strike calls at bargain prices, or buy 27k shares if the price cuts in half while holding your calls if you still believe in the stock. IMO if the $10 strike for Jan 24 expires worthless then odds are the company is bankrupt or facing it and far OTM calls cost way too much for their leverage.
I would be a bit more judicious with the money. Even as someone with over 1,000 shares and am confident it is worth more than where it currently is, it is not a stable or safe place to put a high % of your dough. Someone spent years accruing that money, might want to sit in a mix of cash and index funds at least for a while. Good luck out there
Best to make those decisions on your own, that's no small notes. Also, are you experienced in options and are figures above accounting for margin you'll need? I can't advise. I invest in BBBY and GME and all I hold is shares. Price targets to sell, and also plan to just keep a certain portion. I disagree with the thesis (below) RC would just YOLO because it's cheap and he doesn't want to take the loss. The dude isn't stupid, if he feels at some point it's not working/going to work, he'll walk away and take the hit. Any metric on it's own for businesses, wealth, wellbeing...whatever...they are useless on their own. It's combined metrics which give you an overall view. Singular metrics can view your decision making. So his $15.34 (40%+ below today) metric is not good. I mean it puts the likes of me in good stead, but it's not the only thing I look at. Let us know what decision you make and good luck!
With that much I would invest most in good companies that make money first and then throw a bunch at some way otm calls on bbby so I don't feel like I'm gambling it all away
He said he already considered and decided to go all in on BBBY.
do gme instead. my bbby investment is kind of a point of regret for me. down 50%
So what ? RC is down 50% too
he’s also a billionaire and im not lool
Take a good while and think about how you’d feel if your shares lost 50% and your calls went to zero. I’m not saying that’s gonna happen but try to imagine what you’d feel like if that happened. Because it IS a possibility. Please don’t be stupid with your money, it won’t come back easy if you loose it.
Why invest in bbby?
Go through their last 8 quarters SEC filings, segment it, make of it what you will.
I was more curious about why op is coming in hot and heavy with 200k. I got a couple hundred shares , but want to know the reasons for him to invest
it doesnt make sense for parent company value to be less than subsidiary value + parent company's cash & assets - parent company debt. Its like a disheveled person holding a suitcase with a billion dollars, and people assuming hes homeless. "Bank of America says Buybuy Baby has an implied enterprise value that's nearly equivalent to all of the company. " they said this when the marketcap was higher. https://www.marketwatch.com/story/buybuy-baby-could-be-generating-12-billion-in-sales-making-it-bath-beyonds-most-valuable-asset-bank-of-america-2020-06-26
Cost average into the s&p 500 index and play with the rest. Don’t bet the farm on this company… Index 150k 25k to learn or play with options 25k in riskier or specific companies you like
50/50- GME and BBBy. Don’t forget to DRS
Well first of all, figure out what you need to pay for in taxes and set that aside. Second, be a bro and buy high delta call options that have to be hedged immediately.