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"Tony The Tiger" - A Food Stock

The mood of Wall Street is now changing as the reality of tariffs is starting to kick in. Two weeks ago not so much so. Kelloggs had "so-so" earnings come out a few weeks ago and the stock exploded upwards. Note the very last line above mentions the effects of tariffs are not taken into consideration. So many stocks with "so-so" earning reports have jumped in price based on the "lets make America great again" slogan. Deere stock is shooting to the moon as I keep writing about in spite of declining sales in the last quarter. The sentiment seems to be that they are immune to tariffs. On paper they might be. Read this. Americans are struggling to buy gas, eggs and insurance. Total housing starts in the U.S.in 2024 were down 3.9%. Walmart, the recent darling stock in the last four weeks for Call option players woke up this morning with an earnings report which was healthy but with came with some caveats. Here is what happened. Perhaps the U.S. is starting ...
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Biden -Tilray - Thank You Joe

Look at this chart on Tilray.
On Thursday morning I noticed that one of my screens tracking marijuana stocks showed everything jumping up. That has never happened in recent past so I knew something was up. Can you see the little jump I am talking about on the five day chart above? I jumped in and then I jumped in the last hour of trading. Here is the option trade I did. I purchased options that still had a few months time in them.
The bid of $1.22 ask $1.45 was actually a Friday morning opening reading. I sold out to quickly. Better safe than sorry. Now here was the news.
Here now is how Tilray closed the next day, a Friday.
If your not up to speed on Tilray, here is it's five year chart. So much money has being wasted to get to this point. All these stocks in this sector are like wounded soldiers still standing. Will todays good attract additional interest? That's the new question.
So what are some late to the party option players now doing. Some are looking at the 3 series of Call options with a January 2023 expiracy date the mindset the stock will pop again. They might be right. Buy the 3 series and sell the 5 series against them. Here is how they traded on Friday.
I like Village Farms better as I recently read that they provide the Ontario market with the top two brands of marijuana. One brand has a 16% market share and one brand 15%. One final note. With the profits I made on the above trade I purchased Sundial Call options. I have written about this company before. They are based in Western Canada and are now also investing in the booze business. Their focus this year has being to acquire more retail outlets.
Options on two dollar stocks are more interesting than options on three dollar stocks.

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