- BBBY stock rose more than 40% in premarket trading Wednesday.
- Shares of Bed Bath & Beyond are up 300% in the past month.
- GameStop Chairman Ryan Cohen purchased 16,000 calling contracts.
Bed Bath & Beyond (BBBY) Inventory
In Disclosure Major Investor Ryan Cohen has bought at least 16,000 call contracts above $60 on BBBY. BBBY stock rose 29% to $20.65 on Tuesday. Shares of the meme have risen about 300% in the past month, even as many analysts believe the home improvement retailer is heading for bankruptcy. READ ALSO : Exxon Mobil Deep Dive: $94 price target due to lower oil prices BBBY stock news
So what does it have to do with Ryan Cohen? Cohen, Chewy’s Savior (CHWY) and Chairman of GameStop (GME)
, became the most high-profile backer meme stock. After being able to turn around Chewy.com, Cohen was largely seen as a retail prodigy.
Cohen’s 16,000 call options expiring in January 2023 with strike prices ranging from $60 to between $80. This would require a huge short squeeze , possibly the mother of all squeezes borrows a phrase from AMC Ape . These can only be cashed if BBBY stock goes up at least 300% to 400%, although he may sell as their value has risen rapidly . Option purchases were made through Cohen’s RC Ventures investment vehicle. Cohen was reported back in March Just owns more than 11% of BBBY , and although the stock has fallen below $5 in recent months, most of his purchases are estimated to be above $20 per share Before the recent surge in popularity. The retailer lost about $224 million in operating income in the fiscal first quarter and only reported $107 million in cash. Loop Capital gave the struggling retailer a $1 price target earlier this month, saying it was chasing Sears. BBBY Stock Forecast
BBBY STOCK has reached March resistance between $28 and $30 in premarket trading on Wednesday. Above is the $39-$40 resistance area from June 2021. The June 2, 2021 high was $44.51. After that, it’s just $53.90, the hysterical high of the first wave of meme stocks on January 27, 2021. To trigger Cohen’s call option, BBBY stock would need to climb about 60% from its January 2021 high. The stock’s all-time high since January 2014 was $80.82. The Relative Strength Index for BBBY stocks has moved from oversold to overbought (RSI) only since July.
BBBY DAY LINE picture
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