There's a lot of FUD Surrounding BBBY Options

It was quite obvious that someone wanted BBBY below $2 this week. A lot of options expired out the money which may seem like a good thing for market makers, but what about the buying activity under $2?

I haven't seen anyone talk about this, but a lot of people are buying the stock at these prices, which is a result of price suppression and manipulation to keep the stock under $2. There could easily be millions of shares this week bought by retail; I myself added over 200k shares. Now, with BBBY still being on REGSHO, where are the market makers going to get these shares that retail keeps buying at these cheap prices?

Well, that's another problem for them to worry about. They ducked the options chain activity but now they'll have to worry about the FTDs piling up. There is no win-win situation for them. They win in options, they lose in FTDs. They lose in options, they might win in FTDs.

So the rubber band is being stretched further and further, I expect a violent snapback when the company announces:

  1. A merger
  2. Investment activity from Carl Icahn or Ryan Cohen
  3. Profitable earnings

We know that bankrupcty is off the table, and that the recent financing deal is a positive for the company and shareholders. We've moved past the FUD. They tried, and failed. Friday we closed in the green for the first time in nine sessions. It's a sign. Next week will be good.