Tattooed Chef Inc (TTCFQ)

[SilverKnightLV]

From Steve Adams Warrants Newsletter:

So, with ALL of that, where are we with FMCI now? Well, down to $3 from $6...I'm starting to like it.

I just sent this to my paid subscribers:

As you know I've been following FMCI/W very closely. In the pattern I use, you can see the video describing it here (paid subscribers only), I've been looking for the warrant to fall in the time after the announcement of the deal, and before the final vote closing the merger.

And fall very nicely it has!!

There still has not been a date set for the vote to close the deal, but I think the warrant has come down to a level where it can be accumulated for that vote.

But, I still like to hedge, even here around $3.

The trade I like here is buying the warrant, in anticipation of the roadshow and vote, and shorting the August $17.5 call against it. You can get that short off in the $.50-$.65 range. And I'm shorting at around 50-60%, or 1 call option for every 200 warrants.

This provides additional safety if it takes longer for the deal to close, and if the warrant drops a little further, which it still could.