Unlock: Habit Restaurants (HABT) – Puts Closed for 104% Gain
Current Price: $30.41
Stop Loss: $34.00
Time Duration: 71 Days
Trade Idea: Buy HABT September 33 Put for $4.20 debit or less.
SHAK keeps selling off and was downgraded by Goldman Sachs to Sell rating this morning. Although we can pick and choose different attributes, the reality is another burger joint called Habit is no different fundamentally. It is just a matter of time before sanity settles in, and these super-hyped IPOs with negative earnings need to see expectations come down to a more reasonable level. There are currently 5 Buy ratings, 4 Hold and Zero Sell rating on the stock. We want to keep it simple and make a pure technical bet that it is heading for breakdown to its post IPO low below $30. We are looking for a move down to $22 level in the coming months.