Monday - August 15, 2022

Author

Mother Squeezer
August 15, 2022

Today's newsletter will take 4.53 minutes to read.

DRS UPDATE: 52.355*% (estimated percent of shares direct registered) 

On tap this morning:

  • Friday's market recap

  • Monday pre market checkin

  • GameStop NFT update

  • Did you know?

  • Intro to call options

  • Ryan Says

We were buzzing with excitement after last week. Bed Bath and Beyond had an incredible surge in both price and volume and GameStop is gearing up for something spectacular. We had excellent weather for golf over the weekend. We didn't make it out to the country club but we did think about others getting out there.

We'll be honest with you - with all of this volume pouring in on BBBY, IT'S DIFFICULT TO BE QUIET! If you're still on the sidelines, remember, Ryan Cohen bought a bunch of call options between $60 and $80 for January 2023. Why would he buy those if he didn't think the price would be climbing substantially over the next few months?

The real reason we didn't make out to the club is because not feeling like we had the right attire. However, my socks were so old that I actually could use them for golf. They had 18 holes. /joke

Good Morning! This is Mother Squeezer, the newsletter that works hard to keep you on your toes by bringing you clever wardrobe hacks, updates and insights along with timely information about our favorite Activist Investor, Ryan Cohen, and our favorite stocks - GME and BBBY.

We've invested all of our money into GameStop and Bed Bath and Beyond. That makes it tough at times, especially when budgeting for necessities like our upcoming Christmas Tree Stylists expenses, while we're waiting for things to unfold in the stock market. Speaking of unfolding, here's a wardrobe life hack that aims to prolong your existing garment collection, saving you several dollar bills each year:

Now that's what we call ingenuity. But seriously, golfers - why do you wear two pairs of socks? Oh yes, in case you get a hole in one.

Bed Bath and Beyond

Get ready for trading halts. We think this is going to be a big week for Bed Bath and Beyond. The amount of interest in the stock has grown exponentially over the past few weeks and it doesn't appear that there is much ammunition to hold it down. Pre market volume is over 2 million which is pretty incredible. Let's watch and see how high it's going to go this week!

Friday Recap: BBBY shot up right at open, shooting up past the day low of $10.39 and built some solid strength above $12. It soared to $13.28 before retreating back and ended the day at $12.95. It finished the day trading over 80 million shares. This has brought our average volume up to over 47.5 million shares.

Cost to borrow: There were 250,000 shares available to borrow earlier this morning with none available now. The cost to borrow continues to stay elevated, currently at 30.5%. Watch out! That has risen almost 50% since Friday!

Pre market: Bed Bath and Beyond is trading up $2.25 to $15.20 a change of 17.37% on over 8 million volume already!

Max pain: We're beginning the week with max pain for BBBY at $10 which will most likely be rising throughout the week.

While we're on the topic, if you do find yourself in need of socks, Bed Bath and Beyond has 347 product listings: socks.

GameStop

GameStop has been trading sideways for the last several days ranging between $38.50 and $42. Will we see a breakout this week due to OpEx? 

Friday Recap: GameStop closed up 3.27% ending Friday at $40.74. Trading volume was lower than average. There were just over 5 million shares exchanged, coming in below our average trading volume of 6.83 million shares. 

Cost to borrow: Earlier this morning there were 400,000 shares available to borrow. Currently, 35,000 are available. The cost to borrow dropped slightly since Friday, currently at 24.4% dropping from 27.4%.

Pre market: GameStop is trading down $0.63 to $40.11, down 1.55%.

Max pain: The current max pain for GME is $37.50.

Despite what main stream media urges, let's not forget GameStop, they carry socks too: socks.

Here's the latest activity from GameStopNFT on Twitter:

The GameStop NFT marketplace continues to heat up. Judging from the activity in the marketplace, you wouldn't know we're in a bear market.

Did you know?

The "Greatest" stock short squeeze to date is credited to Volkswagen. Back in 2008 in two days, it quadrupled after Porsche announced it had taken a 74.1% stake in the company. For those familiar, did you notice this Ryan Cohen reference: 7-4-1?

What is a call option?

We mentioned that Ryan Cohen had purchased call options on Bed Bath and Beyond. Some of our readers don't know what that means, so here ya go:

A call option gives you the right, but not the requirement, to purchase a stock at a specific price (known as the strike price) by a specific date, at the option’s expiration. For this right, the call buyer will pay an amount of money called a premium, which the call seller will receive. Unlike stocks, which can live in perpetuity, an option will cease to exist after expiration, ending up either worthless or with some value.

The following components comprise the major traits of an option:

Strike price:The price at which you can buy the underlying stockPremium:The price of the option, for either buyer or sellerExpiration:When the option expires and is settled

One option is called a contract, and each contract represents 100 shares of the underlying stock. Exchanges quote options prices in terms of the per-share price, not the total price you must pay to own the contract. For example, an option may be quoted at $0.75 on the exchange. So to purchase one contract it will cost (100 shares * 1 contract * $0.75), or $75.

https://www.bankrate.com/investing/what-are-call-options-learn-basics-buying-selling/#:~:text=What%20is%20a%20call%20option,the%20call%20seller%20will%20receive.

We won't go too deep here, but call options are a great way to pick up more shares if you believe a stock price will climb in the future. If you'd like us to include more options content, let us know! 

Ryan Says

Now this is quite funny. CNBC promoting an analyst (who most likely holds a short position on BBBY) who has a $1 price target on Bed Bath and Beyond - shows a shopper with a full cart. Ryan chimed in and pointed out the obvious 🤣:

The way BBBY is behaving is awfully familiar. GameStop had similar activity before it soared back in January 2021. 

In anticipation of a huge surge, we created a new Bed Bath and Beyond emoticon logo: 🛌 🛁 🚀. What do you think?

We believe Ryan Cohen is becoming this generation's premier activist investor. That's why we created this newsletter - to help others become aware.

Have a marvelous Monday and we'll be back in your inbox tomorrow morning so enjoy the show and let's see how high she'll go!

Spread the Word

We love Ryan Cohen and think he's the greatest Activist Investor of our generation. We are passionate followers of his moves and words and would love for others to know more about this great leader. We feel strongly that life is all about learning who to follow. If you have someone that needs more RC in their life, share Mother Squeezer with them!

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Financial Disclaimer: None of this is meant to be financial advice. We love Ryan Cohen, RC Ventures, GameStop and Bed Bath and Beyond, and like learning and sharing these insights and commentary.

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