Is TLRY stock a buy in 2022?

Updated: 18 May, 2022 seen 24

With this article, I'm launching a new section in the blog - stock picking.

One of the first stocks I would like to talk about - is TLRY brands inc. In fact, I have already talked about this stock quite often in my newsletter and YouTube videos. To keep it simple I want to list my ideas in one place - any yes, guessed it right, my blog.

This is not trading advice. Investments in stocks, funds, bonds, or cryptos are risk investments and you could lose some or all of your money. Do your due diligence before investing in any kind of asset.

Tilray Brands, Inc. is a global pharmaceutical, cannabis-lifestyle, and consumer packaged goods company, incorporated in the United States, headquartered in New York City, New York. Tilray also has operations in Canada, Australia, New Zealand, and Latin America, with growing facilities in Germany and Portugal.

TLRY is a stock I have been trading options on since August 2020.

Most of the time with pretty decent results. Yesterday, after seeing TLRY stock price dip under $5 I decided to play the covered calls game - bought 100 shares and simultaneously sold 1 call option. If all goes to the plan, I will make a 6% return in just 4 days. See: Established New Covered Call on Tilray Brands Inc NASDAQ:TLRY - 6.14% potential gain in 4 day

Nevertheless the covered call outcome this week, I'm looking to trade options with this stock for at least one year. If assigned and called away, will write put options. Spinning the wheel.

My personal input - taking 20-25% annually from trading options with TLRY stock should be considered good outcome.

Now, trying to answer the question - Is TLRY stock a buy? Is it a buy-in in 2022? 2023 or 2025?

My humble opinion (and I haven't done any serious research) is - no, it's not a buy, but it's a pretty interesting stock to play options with. Trying to generate options income. 

From my almost 2 years of experience trading TRLY stock, I've seen this stock price jump from $5 to $10 and even above $20

TLRY stock price as of May 17th, 2022
TLRY stock price as of May 17th, 2022

TLRY is known as quite a volatile stock, with its ups and downs. Volatile stock means - more risks and juicier premiums.

For a now - it seems the stock is trading close to its 52-week low, and kind of gives us a false feeling, that there is no way more to fall. Of course, there is. On the other hand, as options trading involve risk I better buy this stock at $5 than $20 and in the worst-case scenario try to average down losses.

Let's check what stock analysts are saying about TLRY stock:

The 15 analysts offering 12-month price forecasts for Tilray Brands Inc have a median target of 7.25, with a high estimate of 23.00 and a low estimate of 4.50. The median estimate represents a +48.57% increase from the last price of 4.88.

When trading such volatile stocks like TLRY, I better buy them at bottom low prices. Another way probably would be just selling puts and collecting premiums, before getting assigned. 

If you enjoyed this article and would learn more -  sign up for my covered calls newsletter

Disqus