TM Editors' note: This article discusses a penny stock and/or microcap. Such stocks are easily manipulated; do your own careful due diligence.

A First Time For Everything

I usually think of CNBC as the background noise in brokerage offices and waiting rooms, but for once it has made us money. In a Trade Alert last month, I mentioned CNBC moved a stock I had wanted to bet against:

A Second Bite At The Apple

In yesterday’s Trade Alert, I mentioned getting a second bite at a stock I had bet against before:

With a few meme stocks soaring again on Monday, we got another chance to bet against them. I got filled in the trade below just before today’s close; you may get an opportunity to place a similar trade tomorrow.

It doesn’t look like you’ll get the opportunity to get in that one at the same price today. That stock was Bed Bath & Beyond (BBBY), which I had bet against last month at $5.50, and then again yesterday at about $5.86; currently it’s trading at $3.15, after announcing an extremely dilutive plan to raise capital.

A First Bite Of A Different Apple

In yesterday’s trade alert, I also alluded to another stock I wanted to bet against:

I didn’t get filled on a bet against another meme stock up double digits today, the one with these fundamentals,

But we may get another crack at that one tomorrow as well.

Thanks to a CNBC segment on the company, we did. It’s up big again today, and we were able to bet against it this time. Details below.

The stock is Berkshire Gray, Inc. (BGRY), and it was apparently the subject of a CNBC segment earlier today on investing in AI (artificial intelligence). I bought the $2.50 strike, April 21st expiration puts on it when the stock was trading at about $2.20 today (the $2.50 strike puts were the lowest strike available; there were no OTM (out of the money) puts available for it. I got the puts at an average price of $0.71 but would have been willing to pay up to $1 for them.

I just sold those puts at $1.36, for a 92% gain. Two reasons why I exited now:

1. The stock is trading at $1.23 as I type this, and the company said last month that it had received interest from Softbank in acquiring the shares Softbank doesn’t own for $1.30 each, suggesting there’s probably limited additional downside from here.

2. Those puts expire next month, and 92% is a nice gain.

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