And without further delay we have entered into our first trade. Krispy Kreme (Nasdaq: KKD) ran up a whopping 25% today even with a huge market selloff on better than expected earnings. The RSI is above 75, the volume was heavy and the opportunity to buy option puts great. IV (implied volatility) on KKD options collapsed 12% today and they are currently trading near intrinsic values.
I bought 8 put contracts with a June expiration and strike price of $10. I paid $2.05 for each contract. Click on the screenshots of my trade below to enlarge it.
OUR CURRENT TALLY IS:
starting capital $2000
kkd puts -$1656
_______________
remaining capital $344
Todays KKD rise was mostly short covering. The company's PE is well above 20 and the company itself is not deserving of any long money given their management and their past. I will actually take pride in profiting off this ones plunge 
which will start sometime tomorrow.
$2k to $100k trade 1
Parsifall's Blog
6 Followers
Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.