Trade Alert: Some Electric Vehicle and Space Short Ideas

Markets are resting, which is probably a bit of a relief to bulls and bears and longs and shorts alike. There’s still 15% of the trading week left though, so we’ll see if it gets fireworks one way or another before the weekend.

I’m adding a few short hedges to the portfolio by taking advantage of the small premiums in puts in a few names. I’m buying puts on Blink BLNK which I think might be favorite short candidate right now as I think the company’s published estimates of how many charging stations they have are exaggerated. That along with a few puts on NKLA another fishy electric vehicle entity make some good hedges for our TSLA long too. Nothing big here but the puts dated out a week to a month with strikes above and below where the stock is currently trading look attractive to me. Maybe a few similarly dated and priced puts on MAXR, a satellite company that I mentioned last week looked like a good hedge for our Space Revolution stocks also look attractive here.

If you don’t know what any of this means, don’t worry and don’t mess with it. Essentially, I am making some bets that BLNK, NKLA and MAXR are headed lower but this is a trade and not a core investment play for Trading With Cody subscribers. I am often asked by you guys what my favorite short ideas are and I always tell you when I see the opportunity to buy some puts and/or otherwise short some stocks, I try to flag them for those more aggressive traders.

Let’s do this week’s Live Q&A Chat at 1pm ET today (Friday). See you there. Come directly to the TWC Chat Room or just email us your question to support@tradingwithcody.com.