Khouw said Beyond Meat is an exceptionally volatile stock with high short interest and it's in the midst of a short squeeze. He explained that the implied volatility is 110%, which is unheard of.
Instead of owning the stock, Khouw wants to sell the Sept. 150 put for $8.50, buy the Sept. 235 call for $23.50 and sell the Sept. 260 call for $15. The trade can be done for no money and it's going to be profitable if the stock closes above $235 at the September expiration. Its maximal profit is $25. If the stock drops below $150, you would have to buy the stock at that price.
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