What's the best play with Bed Bath & Beyond? There should be a very attractive trade coming up today or Monday. Near the end of the day, if it's still trading lower, sell out of the money puts. Fear of continued losses tends to push portfolio insurance prices up dramatically, while at the same time the stock should bottom. It's not one to get greedy with, hold on for a few days and as the implied volatility falls (hopefully with a nice dead-cat bounce), exit out with a quick hit and run for profits. Otherwise for longer-term investors, the best play is to wait until we are closer to the next earnings release for an entry.Disclosure: The writer holds no positions in any of the stocks mentioned.
Making Money on Bed Bath & Beyond in a Wal-Mart World
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