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Well holy smokes folks the situation with the chef is getting crazier and crazier and crazier as we go along chef making a huge upward move here today i’m sure a lot of you guys have seen it five percent plus here today it’s my second best performing stock today only stock doing better than the chef today is actually revolve stock revolve making a nice upward move of
Over eight percent today but yeah outside of revolve the chef is outperforming everything and it just seems like the chef stays so hot recently for like the past week or so okay and a lot going on here and by the way congrats to anybody that’s making some gains in this stock uh now just in this account alone we’re up 183 thousand dollars this is a stock we were down
On about a week and a half ago and that’s what i always tell you guys in the stock market man yeah things can go really bad really fast sometimes if you get in in a stock that is especially really volatile right and it shoots down but man i can tell you what like it goes the other way too right and next thing you know you’re down and out and you’re like oh my gosh
I’m losing money everything’s going so bad next thing you know you’re up six figures plus right uh it changes quick and uh that’s the that especially when it comes to growth stocks it can go really bad really fast and go really good really fast okay in this video here today we’re gonna talk about two things we’re talking about the crazy stuff that’s now happening
With the chef stock which man there’s a lot of it okay i got a lot to show you guys in this video here today and we’ll talk about what i think will happen next in this situation hope you guys enjoyed this little video as always all i ask in returns that you smash out a like button that’s literally it guys appreciate you being here as always if you want to learn
Directly from me and check out our brand new course how to invest like a pro in 24 hours or less check out the pinned comment down there guys i’m sure a lot of you guys will absolutely love that learn a ton and take your investing to the next level okay alrighty guys so where i want to start here is looking at volume here today okay this is just one of many uh
Out of the ordinary things happening with the chef here today i mean we’re talking about basically around a 2x of volume today this stock is clearly seeing a lot of trading volume now we talked recently about some option plays in relation to the stock and some folks buying options things like that but uh these are just like this is like shares trading here right
So there’s clearly buying momentum in the stock in general for 3.3 million plus shares to trade here today when 1.7 million is the average volume for the stock so clearly there are a lot of folks that are getting very interest in the chef and i wouldn’t say just retail folks let’s put it that way i know every time one of these stocks starts to move up everybody
Likes to say it’s only retail or something like that um in one of the smaller market caps no i can tell you it’s got to be some fun money in there as well uh you know to get this type of volume because keep in mind you know if a hedge fund is buying in or making a move here they’re buying tens of thousands of shares or selling tens of thousands of shares at a time
Right or maybe even hundreds of thousands of shares right they’re the ones that can really push up that volume in in a big meaningful way so yeah definitely some big volume here right off the bat and by the way if no one knows of what volume is essentially shares trading back and forth how many shares are trading in a given day and like i said oh basically about
2x the average volume it’s a wednesday you know what i mean it’s a wednesday in september like it’s it’s nothing crazy going on today the market’s not extremely volatile today it was not a crazy day in the market or something like that this is strictly a chef uh you know situation going on here okay now look at this what you’re looking at here somebody thanks for
Uh i think it was martin in the uh the private discord chat okay and by the way check out pin comment if you’re interested in joining us in the private discord chat as well okay martin posted this thanks so much for posting this martin in the tattooed chef category okay what you’re looking at here is call options all right uh or options in general we’re looking
At october 15 2021 expiration so we’re talking about about a month and two weeks from now these options will expire right and these are looking at calls here you’re looking at puts on the other side over here but specifically look at the call side okay look at the open interest over here and look at the volume over here on the call side now look at the put side
You know in the type of volumes over here not even remotely close you know what i mean especially in terms of like the actual volume that’s going through when you look at these ones you know you’re talking about 1400 1600 1500 1200 there and you look at volume on the put side you don’t see anything even close to this the biggest on the put side would be 1750 puts
645. you have several different call options basically trading that are you know way out of the money i mean look at these okay when i say out of the money what does that mean it essentially means uh the stock price would have to trade significantly above wherever it’s trading at now it’s outside the money um you know like like way outside i mean look at this some
Of these are are way way outside the money if you look at this one 2250 okay we’re you know right around in the money there but then look at this 25 you’re way outside the money there right you need a you know another pretty big upward move here we’re talking about 30 strikes okay 30 dollars that’s a sign that’s what we need to go up what another twenty to thirty
Percent to get to thirty dollars thirty dollar strikes and look at the volume on that one thousand six hundred and eighty four call options and keep in mind each call option on contract represents 100 underlying shares so if you want to you know understand basically uh a share amount on what the volume was there times this number by a hundred by the way this was
Taken before market closed so i can guarantee all these numbers are actually significantly higher by the time the market actually closed i think martin took this screenshot about an hour before the market closed roughly okay so think about it from that context you know clearly a lot of folks expect this stock to go on an absolute rocket ship ride over the course of
The next month and a half essentially look at this 35 strikes we’re talking so far daying out of the money it’s ridiculous right 35 and think about it like this right tattooed chef stock last week i think it was last week or the week before was 16 a share you’re talking this is over a double up in a matter of two months right from where it was a week or two ago to
Basically now october you know the 15th expiration 2021 you’re you’re looking essentially at a situation here where this is over a double up in a matter of two months right and 1 472 contracts volume and like i said this was taken before you know an hour or so before the market closed so we’re talking about maybe 150 000 plus underlying shares and justice option
Contracts alone that that went through today you know never mind all these so clearly there’s a lot of folks out there or funds investors in general that feel like the chef stock is about to do something epic okay let’s just put it that way epic now you know me i’m a long-term investor in this stock you know regardless if the stock moves to 30 over the next month
And a half or stays at 22 or moves down to 18. like you know it’s all good for me because i’m planning on holding the stock for years ago in the future but that’s me there’s a lot of other folks that say nah man this is about to take a rocket ship ride to mars okay and like i said look at the puts over here there’s not big volume over here i mean big big is relative
Right i guess this is big compared to normal volume but it’s not big compared to the put side or the call side right i mean just like clearly you know folks if they’re placing their bets here that this stock is going to go up in a massive massive way compared to over here i mean you know this is honestly what this feels like over here is probably some people saving
Face meaning essentially hey i just bought a bunch of way out of the money calls maybe this goes south let me buy some 1750s and some 20 strikes to maybe save some face here if something goes south or maybe even some 15 puts right just in case it goes south here right so definitely some food for thought here guys i mean this is unbelievably bullish activity in
A very short amount of time to be risking that sort of money here people gotta you know know something either either people know something uh that’s about to happen here or they’re just in a situation where they’re gambling one of the two and there’s really no in between right look at this okay uh somebody in the private group uh posted this in the discord chat
Today 21.5 interest rate for basically um you know lending your shares out there now this is something that i guess all the brokerages are kind of doing and this goes into uh kind of what we spoke about recently right where essentially the shorts are caught into a massive pickle here and the interest rates have gone absolutely insane to try to borrow shares right
And so if you’re lending your shares you can make crazy interest now this is very tempting for somebody like myself that has a million dollars plus in this stock right i have seven figures on tattoo chef and i could get that type of interest rate but you know what i’m not going to do it i’m not going to do it although it is very very tempting i don’t want to do
Anything that helps out the short sellers you know short sellers they will make up lies about stocks they will do so many manipulative things i’m not even interested in potentially helping them out even if that would help myself out because that is a crazy interest rate i could make on basically lending out my shares i’m not going to do it i’m not going to do it
It is extremely alluring it is extremely tempting uh but i’m not gonna do it at the end of the day i’m looking at this and i’m like you know shorts you’re you’re in a real pickle here um and you know it is what it is okay you know i don’t like short sellers as it is and especially you know dealing with a lot of these short sellers and and uh the way they act the
Way they will make up you know straight up lies about companies things like that and um you know i’ve just dealt with them for you know the the past decade plus and i’m just i’m just like whatever you know what i mean i’m not i’m not here to lend you a hand let’s put it that way um you know they wanted to do this situation they wanted to constantly keep you know
Shorting the stock and shorting the stock you know deal with it you know that’s your own situation because i tell you the shorts aren’t going to be there to save me if i lost all my money in this stock they’re not going to save me for a second right they’re going to be like you lost all your money in this stock you know suckers what an idiot you are investing in
A tattoo chef they they won’t be there to save me for a second so um you know it’s a dog eat dog world in stock market and although it’s tempting nah nah i’m good thank you thank you okay uh no a lot of brokerages are even contacting clients about this somebody in the private stock group discord chat they posted this this email i got from friday they said they
You know tagged me in this um they got that that email last week they said okay and basically what it says is thank you for your interest in fidelity’s fully paid lending program attached please find some information about the opportunity the program fact sheet master securities lending agreement msla and collateral documents are all included the msla governs
The securities lending relationship between you and fidelity and the collateral appointment letters providing overview of the services at wells fargo and bank of america okay we’re getting into all these different places huh wells fargo and bank of america provide us collateral agents the documents are for informational purposes and do not require your signature
And this was obviously last week and at that time chef was all the way up to a 17.6 percent rate and keep in mind that you know the other private group member just posted 21 now it’s over right which means the shorts are getting themselves into a bigger and bigger pickle by the second now to keep in mind what some of these stocks usually trade out corsairs at one
Percent fubu which one you think would be high right no 0.375 so they’re in uh a serious pickle here in regards to chef and um i’m talking a a massive pinnacle in regards to chef and i’m talking gargantuan because when you when you see you know a rate go to five percent okay we’re talking like you’re getting up there right when you see ten percent it’s like oh
You gotta be flipping my flapjacks what’s going on here seventeen percent is ridiculous and now the fact that it’s over 21 percent means the shorts are in absolutely a world of hurt in this scenario okay an absolute world of hurt and like i said i’m not lending my shares it you know they can you know they wanted to get themselves into this you know hey pay the
Consequences in the end now last night i posted that video on the main channel right and we got into uh actually very well done wall street bets uh post that was posted in there right which wall street that’s like over 10 million people in there right it’s like a huge deal and somebody did a very well informed post about what is going on here in regards to chef and
If you haven’t gotten to check out that video yet i would definitely definitely check out that video because that goes into the details on what that individual in that wall street bets post you know what their opinion is the details there which it gets pretty darn intriguing and they break it down in an amazing fashion it’s going to cover mostly trading related
Things that’s going on with the stock for the next month or two but it’s going to absolutely blow your mind i know when i was reading through it i was like geez a weasel you know man i stay in my lane which is investing but man that trading stuff going on there is pretty darn crazy okay now what do i think is going to happen here what kind of my perspective on
This okay so the shorts are are short in the stock right hoping it goes back to 16 to 18 right this is their play now uh is it possible for chef to go let’s say under 15. it’s possible it’s unlikely it is possible the chef could go under 15 it is unlikely the chef goes under 15 okay because here’s a situation every time the stock drops to let’s say 16 to 18 if
It happens again the longs like myself are there to pick up shares in mass like you know if if chef was at 16 today i’m buying six figures of the chef here today right and so to get the chef to ever go down in a in a massive way right where you know the shorts are always talking about oh it’s going to go down to 12 this is what you know especially when it when the
Stock’s actually going down oh it’s going down to 12. it’s gonna go down to eight it’s gonna go down to ten they throw out all these numbers right that’s going to zero gosh okay they throw out all these numbers but what they don’t understand is every single time this one drops in any major way the longs are ready to pick up shares and we will gladly pick up shares
And the thing is the more the stock goes up and the more attention the stock gets the more and more longs that are going to jump on this dog and be interested by at a higher and higher prices especially as a company executes better so 16 to 18 dollars this is the been the current most recent range for the past few months but eventually that range is going to move
To 18 to 20 dollars it’s going to move to 20 to 22 dollars that’s going to move to 22 to 24 dollars in terms of where the major buying pressure comes in if the stock drops big right as the company executes more the revenues go up also in profitability starts coming in the next year right and uh then you have also the the big funds start getting involved in this
Stock more and more then you’re in a situation where the base where it goes down to gets higher and higher and higher okay and start setting higher highs okay and higher lows as well right then uh also here’s the thing shorts are factoring in man when you went through that that post you know we saw last night there’s a significant risk of this stock going up in
A massive massive way over the short term when you look into what’s going on there now is this something i’m personally going to play no i’m not personally going to play any short-term call options around this although it is pretty darn tempting i’m not going to personally do it okay i’m in this for the long term i’m buying shares for the long term right but the
Shorts it’s like okay big deal if it goes back down to 16 18 you make a little money okay but the the thing they don’t understand is where they would have to cover at if this baby starts rocket shipping is going to be ridiculous and it’s not a huge market cap i mean you know if they if they learned anything from shorting some of these stocks even though large caps
Can move crazy right i mean never mind a smaller cap you know you’re setting yourself up into a stock that it could be potentially a uh a coiled spring let’s put it that way that’s about to launch you to the moon and so i just don’t see it from the short side the hope that it goes back down to 16 18 okay then you have all the longs coming in buying like crazy support
In the stock keep in mind as the stock goes higher and higher longs are going to be willing to pay more and more as a company executes in time goes on right and the numbers are phenomenal 62 branded revenue growth last quarter you know as a story gets out there more as wall street finds out more and then you have that upside potential in the short term uh you know
All i’m going to say is shorts they don’t make any sense a lot of times they don’t in this situation they’re setting themselves up for a world of hurt in my opinion that’s just not worth it but hey they can do what they want to do if they want to pay you know 100 interest rates soon uh they might be on their way for that so anyways hope you guys enjoyed this video
As always if you’re looking to check out our brand new course how to invest like a pro in 24 hours let’s check out that pin comment down there that will also be if you’re looking to try to join us in the private discord chat or the private stock group in general check out the ping comment down there we’d love to have you guys and join us in there much love as always and have a great day
Transcribed from video
THE CHEF SITUATION JUST GOT CRAZIER FOLKS… By Financial Education
