Evil Diaries: Time to dig in to Beyond Meat
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It is nearly impossible to get this call right but Beyond Meat (BYND on Nasdaq) at $186 is a raving short. It is probably best to do it on put options but the most economic bet is to borrow the stock and stay exposed.
Sounds genius but you might want to factor in a borrow cost of 88.3% for the stock and that options trade at over 100% implied volatilities which makes timing the short a lot more important.
I think you are on the wrong side of this trade Evil. To quote:
“The market value of the processed meat is expected to rise from 714 billion U.S. dollars in 2016 to over 1.5 trillion dollars by 2022.”
I suspect within 20 to 30 years most of this will be a BYND type product.
That gives them quite a lot of headroom.
Yes there will be volatility but unless you can time the market (I can’t) well BYND will make a terrible short.
I have a minute position (.1% of folk) because I want to be in at the start (as I was with Google). I believe in the technology (when I started using Google in 1999 after using Altavista it was a revelation!) and I want to be along for the ride.