How to join the bln game of $VFS? Short or Long?
$VinFast Auto(VFS)$ skyrocketed on its debut Aug. 15 and surged more than 346% last week despite bouts of volatility.
Many investors are considering short the stock in light of unreasonable gains. How to join the game? There are four strategies you can choose.
Risk alert
I’m not recommending investors to bet on this crazy meme stock but want to offer some choices for the investors with extremely high risk appetite.
If you are bearish on $VinFast Auto(VFS)$, you can:
1) Short the stock directly
Many investors begin to short $VinFast Auto(VFS)$ at $30 and suffered a lot.
There are two disadvantages for shorting the stock - expensive short margin (162.5% as of 29th August) and large amount requirements for margin account.
Apart from this, the biggest risk is your shorted stock may be recalled and cause huge losses.
2) Short stock + sell covered put
If you want to short or already short the stock, you can choose to sell covered put.
Put premium of VFS is extremely expensive. Thus, as the seller, you can gain the premium to offset the losses in shorting the stock.
3) Short stock + sell covered put + buy call
As we mentioned before, sell covered put can help us gain premium and prevent losses. However, if the stock rises, we can’t benefit from the rally.
So we can buy a call option to gain from the rally. Call is very cheap compared to put options.
If you are bullish on $VinFast Auto(VFS)$, you can:
Many investors who bought the stock already gained a lot. The simple strategy is to buy the stock and chase the high!
It’s known to us the surge it’s a capital game of CEO, with with just 1% of the shares available on the market. Some investors argue that the stock will inevitably rise to $100 or $200.
If we know that it will continue to go up, why not just enjoy the ride?
The risk is, they all speculate the target price of the “banker” and may get it wrong. As retail investors, we need to exit in the right timing.
Risk alert: Go long or short this meme stock is extremely risky! Don’t blindly follow the trend~
How will you trade $VinFast Auto(VFS)$?
What’s your price target?
Leave your comments to win tiger coins!
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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It's fascinating to witness the soaring journey of $VinFast Auto(VFS)$ since its debut, with an astonishing surge of over 346% last week. The allure of such unreasonable gains has indeed attracted attention from both bulls and bears. However, it's crucial to approach this situation with a clear understanding of the extreme risk involved. The strategies outlined provide intriguing options for those with a high-risk appetite.
It's paramount to acknowledge the extreme risk associated with trading $VinFast Auto (VFS)$ or any meme stock. The allure of outsized gains should be tempered with a prudent assessment of one's risk tolerance and a clear recognition that these trends can be highly volatile and unpredictable.
Need to know the difference between speculation and investment. For me, this is definitely not worth investing.