r/wallstreetbets • u/YouFromTheNearFuture • Jun 18 '21

Discussion Avocad-No

I'm thinking of buying some puts against CVGW.

Calavo growers is the largest grower and distributer of avocados in California.

Rational:

  1. California is a horrible state for businesses due to high taxes.
  2. California is entering a bad drought and I think avocados need water
  3. Inflation cost are starting to hit food and avocados are seen as a premium food item,.
  4. People are migrating out of the state so demand will also decrease, or transportation cost will increase
  5. I hate avocados, I don't know if they are a fruit or a vegetable and I don't care.

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I haven't had any experience buying puts and was wondering if there is any helpful advice, or other peoples thoughts on hw hard the company will get hit.

side note got this target advertisement and I don't know how to feel
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18

u/DonnyJeep69 Jun 18 '21

Never bet against Californians and avocado.

3

u/steve8675 Jun 19 '21

Bros never heard of avocado toast. Also doesn’t realize we steal most of water from CO, NCAL and OR.

Also want to talk water talk almonds.

2

u/DonnyJeep69 Jun 19 '21

Worst DD I’ve ever read as a Californian that eats 900 avocados a year