If there was a time for Whole Foods to plunge to new lows, this would be it. The stock is still mired in a sell off. It looks weak. Each rip and attempt at $40 is met with heavy selling pressure. It seems like a stock no one wants to buy. So why did I buy the calls today?
I believe $WFM is in the early stages of a move that will take the stock back over $50. This will be a similar run to $X and $BIG. Both stocks rallied over 50% earlier this year after I mentioned them, and I think $WFM is the next stock to have such a move.
$WFM from a chart perspective has bottomed. I also think it has what activist investors are looking for. Back when $NFLX was at $53 we saw the same value. Also $AAPL at recent lows.
Carl Icahn Went long both stocks. They have worked out great since.
$WFM has record short interest.
The shorts are betting with their wallet that $WFM has further downside. If $WFM has indeed bottomed, we could see a strong move off current levels, and much of the buying pressure will be supplied by surrendering shorts.
We shall see. I think the shorts have $WFM wrong. They think they have $WFM right. That's the great thing about this market.
Good luck to my calls. According to the shorts, I'm going to need it.