MSOS and the midterm call option bet chasing a 5,000% gain
As seen on the 24/7 Wall St. homepage on October 31, 2026.
"You know me..." No we don't.
A trader is loading weekly calls expiring Nov. 6 on the bet that election hedging revives cannabis, a sector that fell over 80% after the 2024 result. Binary catalyst trades like this expire worthless the moment the thesis slips a day.
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A trader on r/wallstreetbets argued on Halloween that cannabis stocks are the most logical hedge into midterm election results. The post drew 511 upvotes, making it one of the more-discussed pre-election setups on the forum that day.
The argument is a sector rotation bet: with AI and crypto names facing regulatory headwinds if Democrats flip one or both chambers, hedging capital rotates into cannabis before November 6. The author points to the 2020 election, when certain weed stocks gained over 2,000% after Democrats performed well.
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The position is weekly call options expiring November 6, the same day as the election result, leaving almost no time buffer. If the hedging flow never materializes, the options expire worthless. That asymmetry is what makes a 5,000% gain claim possible.
The most-upvoted reply in the thread was a two-word gut check aimed at the author's claim of a prior track record. That comment, from user Low_Pineapple_1558, reading simply 'No we don't,' shows how even an enthusiastic crowd is calibrating the credibility of the setup. The post also cites a single-day 55% move on December 12 tied to marijuana rescheduling news.
Mentioned: MSOS