Whole Foods Testing Support and Record Short Interest

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.

My $X calls

My $BIG calls

$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.

Known to most as Uranium Pinto Beans, Jason has more than 15 years under his belt of trading stocks, options and currencies. His expertise primarily lies in chart analysis, and he has a strong eye for undervalued stock. Because he’s got the ability to identify great risk/reward trades he usually enjoys taking the path less traveled and reaping the benefits from the adventure.

He is a co-founder of Option Millionaires, and he is best known for his weekly webinars with Scott, as well as his high level training webinars and charts found in the forums.

More Posts by UPB: View All | Private Twitter Feed: Access Now! (For Diamond Members)

Leave a Reply