[AvivaSimplex]

Very interesting. I knew there was some reason I kept reading this forum.

I was able to find the Jan 05 post on valueinvestorsclub. Is there a more recent one? Specifically, I'm looking for the source that individual store sales are below 50k/week.

I'll do some more research, but KKD certainly seems like a bad business. They haven't filed financial documents in more than a year. Leading up to that point, we see diminishing same-store-sales. Recently they've closed 22 of their 343 stores. I certainly wouldn't bet on them.

I would suggest you give a little more consideration to shorting. If you don't have a timeframe for when you expect the stock to tank, there's a good chance you'll overpay for time value, or buy options that expire too soon (right now obviously you're leaning towards the former). If you couple a short with a stop-loss order, you don't necessarily face the 100% gain/infinite loss problem.