Beyond Meat (BYND) – Trade Idea

Company Description

Beyond Meat, Inc., incorporated on October 30, 2008, offers plant-based burgers. The Company offers its products in a range of categories, such as The Beyond Burger, Beyond Sausage, Beyond Beef Crumbles and Beyond Chicken Strips. The Company sells a range of plant-based products across the three main meat platforms of beef, pork and poultry. The Company provides Beyond Mushroom Bacon Cheeseburger, Chef Spike’s Original Brat, Roasted Garlic & Italian Sausage Pasta, Beyond Beef Tacos and April Ross’ Butternut Squash Mac-N-Cheese. The Company also offers Beyond Spring Burger, Beyond Nacho Burger, Beyond Sausage Stuffed Peppers, Tuscan Style Beyond Sausage Pasta, Beyond Brat Breakfast Burrito, Beyond Beef Fiesta Power Bowl, Beyond Beef Nachos, Truffle Mac & Cheese Beyond Burger, Love & Lemons Guacamole Beyond Burger and Beyond Burger Tostada With Marinated Kale. The Company competes with Cargill, Hormel, JBS, Tyson and WH Group.  Source: Reuters


Option Pricing

  • Implied Volatility (expected price movement) for short-dated options is 105%
  • Realized Volatility (historic price movement) for short-dated options is 54%

Trade Idea

BYND has been a hot stock after its IPO on 2 May 2019. Speculation has been rampant in both the shares and the option markets. BYND common stock is up a staggering 219% at the time of writing. This stellar performance makes the offering a top IPO performer YTD. Find below an example on how you could trade BYND if you are moderately bullish disposed:

Buy116 Aug215Call
Sell216 Aug235Call

Break-even on August expiration:

  • Profits at or below $259 with max profit at $234.99 (option mkt implies 82% probability of profit)
  • Up to unlimited losses above $259 (option market implies 18% probability of a loss)

PnL Graph

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