Cost of shorting Beyond Meat | Value Investing News

Cost of shorting Beyond Meat

  • Even assuming I can get a borrow, if I were to short 100 shares of BYND at current market prices, I’d have to pay $88/day in interest expenses (another way of thinking about this – 88 cents per share per day!)
  • Even deeper in the money (e.g. strike price of $175) your break-even, even if you get a mid-point execution is $116/share, or basically paying a 22% premium to short the stock.
  • Even paying a spread (e.g. making a bet that BYND will be lower than $120/share by December expiration) by buying the 150 put and selling the 120, your effectively are paying $21.15 (again, assuming mid-point option trades) for a maximum $8.85 profit IF the stock goes to $120 or below in a few months.
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