A Curated Platform of Equity & Options Market Intelligence
Select Page

Hawk’s Nest

Beyond-Meat (BYND) Options Signal Sparks Major Rally in Shares

by | Oct 5, 2020

On 9/14 we highlighted bullish call buying activity in Beyond Meat (BYND) and wrote the bullish view on the much-hated name.

BYND shares went on to gain 25% over the next three weeks and the call options in the name exploded higher for massive gains.

Here was the original write-up:

Beyond-Meat (BYND) back near last week highs and 1000 November $140 calls bought in good sized lots $20.50 to $21.45. BYND call activity has been elevated since the 8/27 base breakout high volume move, and has seen November $180 far OTM calls accumulate 7400X in OI. BYND also exhibiting inverted IV Skew at -2.7 on 30 day. On the chart BYND shares put in a strong weekly base near $123 and starting to work higher, and a potential rising channel developing on the weekly while the volume zone breakout targets $170. The $8.93B maker of plant-based foods currently trades 12X FY21 EV/Sales with revenues growing 238.8% in 2019 and seen rising 61% this year and 55%+ next year while profitability is also starting to ramp. BYND announced last week plans to bring production to the China market and its recently launched DTC website could be a new source of growth. It’s main competitor, Impossible Foods, may look to IPO soon. BYND is disrupting a massive $1.4 trillion global meat market, a $270B market in the US and sees itself as the future of protein. Analysts have an average target of $125 and short interest is at 19.7% of the float. Baird initiated shares at Buy on 9-3 with a $160 target seeing added capacity supporting $1B in revenues and also diversifying its raw materials. BYND announced its Meatballs will be available in grocery stores nationwide starting next week. Hedge Fund ownership fell 10% in Q2 filings.”