Re: The details of my Big Bet against Krispy Kreme
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Yes, but you still have your bet on the longer term options...
You think its got a 12-1 chance of going to 5 in 13 days, for real?
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I have 17 days for events, 13 days for trading. I think there is at least a 10% chance the CEO quits in the first 3 months. I think there is a 20%+ chance of a liquidity crunch before end of July. More franchisees could fold, sue, etc. There are chances of further SEC charges, etc. And there is just the normal volatility risk and risk that large investors hate the new filing and start to slowly bleed out of their positions.
At this point it's a very cheap option and I'm wondering why I don't buy more cheap, short dated puts.
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