Trade Alert -A cheaper way to bet on some bubbles popping
Quick trading idea to tell you dear TradingWithCody.com subscribers about. You know I’m bearish about the bubble high flyers like $NFLX, $TSLA and $PCLN for the near-term here, and I think we have a cheaper and even higher-beta way to buy some puts on this “bubbled stocks about to come back down for a while” theme.
$GSVC “invests in rapidly growing emerging companies backed by venture-capital investors. Although it has the ability to invest in publicly traded securities, it prefers to take equity positions while companies are still privately held. As of June 30, GSV had 15% of its assets in Twitter, owning 1.836 million common shares and 65,000 preferred shares. Among GSV’s other investments are cybersecurity company Palantir Technologies, cloud-storage specialist Dropbox, and the recent IPO Violin Memory, which specializes in flash memory.”
I’m buying some GSVC puts dated out into March or later of next year using a $12.50 and $15 strike price. More hedging is really what this trade is all about, but I do think this is another bubbled stock that will be in single digits again some day in another year or two if not much sooner.