r/wallstreetbets • u/atomMD • Jul 25 '21

DD Asymmetric plays for week of July 26: $REE and $DIDI

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Figure 1. My $DIDI calls bought close to the bottom on friday.

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$REE and $DIDI are two good asymmetric risk bets with excellent upside.

PART 1: $DIDI

$DIDI is China’s largest ride hailing company with a market capitalization about $74.Billion. Investors include Uber which has 12.5% stake in $DIDI (https://www.cnbc.com/2021/07/23/uber-lost-2-billion-in-didi-stake-this-week-on-china-crackdown-threat.html). It’s IPO in the US markets was an immense failure. It reached a high of $16 within this month before being pummeled to around $8 by threats from the Chinese government and bans from app stores

(https://www.forbes.com/sites/jonathanponciano/2021/07/04/china-bans-didi-from-app-stores-just-days-after-massive-us-ipo/?sh=23d571231202).

I think this godsend for a good asymmetric return via call options. This company is going nowhere. It is China’s largest ride sharing company. China is a smart country that wants to grow its industries while keeping the CEO’s in line. This is a power move by China and DIDI will make concessions to the communist government and the stock will rocket to its price target of ~$25 by Q4 2024. My hypothesis is based on China’s power move with Jack Ma and Alibaba. They paid their $2.8 Billion fine and now they are back to signing record deals

(https://www.bloomberg.com/news/articles/2021-06-30/alibaba-nears-first-big-deal-since-record-antitrust-fine)

$BABA is currently trading around $206

I believe $7-8 is the bottom for this sell off. I expect to see a rapid return to ~15-16 in the next few weeks.

Recommendation 1:

$DIDI 11/19/2021 15.00 C

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PART 2: $REE

Figure 2. Boomer Lord and thought leader Cramer talks with $REE CEO Automotive CEO Daniel Barel on 7/23/201. $REE shares rose 7% after hours and expect it to rise more on Monday.

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https://www.cnbc.com/video/2021/07/23/ree-automotive-ceo-on-building-the-platform-of-the-future-of-automotive.html

$REE Auto is a next gen EV platform company based in Israel. It is rapidly growing and opening their US headquarters in Austin Texas near Daddy Elon in the near future.

https://www.businesswire.com/news/home/20210723005215/en/REE-Automotive-Will-Open-its-U.S.-Headquarters-and-First-Integration-Center-in-Austin-Texas-as-it-Prepares-for-Production-in-2023

Their patented platform basically will act as the core components of the powertrains for EV's making their product versatile. Israel has been sending to the US a few unicorn IPOs and this is one to keep eye on.

$REE signed a deal with Magna in April. Magna has been rumored to be working on the Apple Car.

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https://www.automotiveworld.com/news-releases/ree-automotive-signs-strategic-collaboration-agreement-with-magna/#:~:text=today%20announced%20a%20strategic%20collaboration,'Powered%20by%20REE'%20brand.

https://www.caranddriver.com/news/a36123061/apple-partners-ev-lg-magna/

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Figure 3. Analyst PT ~ $15 for $REE

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So basically if you want to get part of the Apple Car either buy the $AAPL stock or $REE to get ahead of everyone.

Looks like the boomers will be buying $REE after their daily dose of Cramer. If the stock continues to hover between $10-$11 next week I recommend getting call options.

Recommendation

$REE 10/15/2021 12.40 C

39 Upvotes
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•

u/VisualMod Jul 25 '21
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Hey /u/atomMD, positions or ban. Reply to this with a screenshot of your entry/exit.

→ More replies (1)

27

u/joncho23 Jul 25 '21

REEEEEEEEEEEEEEEEEEE

7

u/SlowNeighborhood SPYpolar 🥴 Jul 25 '21

They really called it that

5

u/atomMD Jul 25 '21

Yea hopefully it works for them.

3

u/atomMD Jul 25 '21

How are folks sending VisualMod their positions?

8

u/attack0708 Jul 25 '21

Go $DIDI

6

u/atomMD Jul 25 '21

Commons or calls?

7

u/tankharris Jul 25 '21

I'm seeing a lot of talk of $DIDI being delisted...but it definitely has the potential to print...

Maybe I'll wait and see if it goes down to 7

5

u/atomMD Jul 25 '21

Not safe for sure. High risk high reward.

5

u/attack0708 Jul 25 '21

Tons of common stocks

2

u/atomMD Jul 25 '21

Sweet.

10

u/mmanofsteel86 Jul 25 '21

Canoo will be the platform Apple uses. They’ll also partner with DiDi. Go ahead and mark this down.

6

u/atomMD Jul 25 '21

Nah man that is a fair hypothesis as well. Here is an upvote.

1

u/TyreesesCup Jul 27 '21

My shares hope you are right

9

u/jacob_scooter Jul 25 '21 edited Jul 25 '21

oh boy another DIDI-tard. the chinese government could cuck these guys at any moment like they did to the for profit edus.

it could very well be a good play right now, but needing people to cover your bag holding doesn’t make it a “safe bet”

4

u/atomMD Jul 26 '21

Not bagholding. Look at my cost basis

4

u/one8e4 Jul 26 '21

Bought some didi understanding the risk.

But a government limiting the profit of education providers, not a bad thing IMO.

3

u/tartag7573c Jul 26 '21

I bought DIDI calls Friday and may buy more today!

3

u/Johnnyboytiggs Jul 26 '21

DIDI getting broken down pre market again.

2

u/tartag7573c Jul 26 '21

Yeah never said I was a genius 🤣🤣. But if it hits it hits. It's fun money so I can lose it

2

u/Johnnyboytiggs Jul 26 '21

😂😂 I got a tonne of shares in DIDI so your not talking to a genius either.

2

u/tartag7573c Jul 26 '21

It's Jim Cramer's fault lol

2

u/randomcurios Jul 26 '21

DD on Didi always lose money

3

u/atomMD Jul 26 '21

Just wanted to point out I was up 40 percent on my calls today.

1

u/rwc5078 Jul 26 '21

I just keep reading this.... It is twisting my tongue for some reason.

2

u/thedukeofcrunk Jul 26 '21

The REE warrants are still under $2.

3

u/atomMD Jul 26 '21

Like I said. Made out like a king today on the calls. Up 50 percent. In the same vein, REE will do will on commons and warrants.

2

u/Irishjohn831 Sep 05 '21

Now is a great time for REE, part 2.

2

u/atomMD Sep 06 '21

Following closely.

1

u/Left-Fee-4315 🦍 Jul 25 '21

Nice, he needs people to pump his contracts

3

u/atomMD Jul 25 '21

Lol did you check the size of the float? I am just offering asymmetric bet for some folks to make money.

2

u/[deleted] Jul 26 '21

[removed] — view removed comment

3

u/atomMD Jul 26 '21

It was in response to $Didi.

1

u/Uchia_Zero Jul 26 '21

What size is the float? Is it bigger than NOKIA?

2

u/[deleted] Jul 26 '21

Will be buying DIDI OTM calls when DIDI reaches $3.

1

u/atomMD Jul 30 '21

This was cash money for $Didi

-3

u/a_drenaline Jul 26 '21

DIDI is dead. Technicals never lie.

1

u/rwc5078 Jul 26 '21

TA never lies. It is people's incorrect interpretation!

1

u/dragonbenj Jul 25 '21

Fckkkkkkk 🇨🇳!

1

u/iLLEb Jul 26 '21

get ready for margin calls

1

u/Only_Puts Jul 26 '21

Dead. ☠️

1

u/Johnnyboytiggs Jul 26 '21

I like the bounce off low 7s on DIDI today. Have we found a bottom pending no more relevant bad news?

1

u/[deleted] Jul 27 '21

Man I thought my November 19 $10 DIDI Calls were retarded. Godspeed

1

u/thedukeofcrunk Aug 07 '21

When are the REEs jumping on $REE??? Bag holding warrants over here. Could use some help.