PLUG Mean Reversion
Updated
Extremely oversold. While its fundamentals might still point that it is overvalued, its technicals are looking strong for either a strong move back up as shorts take profits and people buy back in now that it is at a key support level and has shown resistance towards a further down move.
High Probability, but risky due to its high volatility.
Trade Ideas:
High Probability, but risky due to its high volatility.
Trade Ideas:
- Shares: Long between 33-42 for 50, 55+.
- Short Put: 25 Strike expiring 4/16 for $0.72 credit. 83% POP and very cheap at $250 BPE for a solid 28% ROC.
Trade closed: target reached
Close Short Put. The 25-strike SP is currently trading for $0.22 resulting in a $0.50 or 69% profit per contract.Take profits on shares. PLUG is also trading at $46.5, which is at least 10% above the entry price of $42.
Note
While PLUG has tanked 16%, it is still above the $33.26 support, and is back at our accumulation target for shares. This move was related to the correction in fundamentals so that needs to be considered before entry or reentry now.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.