SWBI Smith & Wesson Brands Options Ahead of EarningsAnalyzing the options chain and the chart patterns of SWBI Smith & Wesson Brands prior to the earnings report this week,
I would consider purchasing the 12.5usd strike price Puts with
an expiration date of 2024-9-20,
for a premium of approximately $1.35.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
Smithandwesson
SMITH & WESSON Breakout long! $SWBIThis is a great spot for a long entry. $SWBI has broken out of it's channel and is looking to make a MASSIVE leg up!
Smith & Wesson Brands, Inc. is a holding company, which engages in the manufacture, design, and provision of firearms. Its portfolio includes handguns, long guns, handcuffs, suppressor, and other firearm-related products. The firm's brands are Smith & Wesson, M&P, Thompson/Center Arms, and Gemtech. The company was founded by Horace Smith and Daniel Baird Wesson in 1852 and is headquartered in Springfield, MA.
*Not Financial Advice*
SMITH&WESSON ($SWBI) 🚨 | This Portnoy Pump is Locked and Loaded🔪 If you are a bear, the last thing you want is to be staring down the barrel of this Smith & Wesson chart especially after Warren Buffet's successor David Portnoy set his sites on it.
SWBI has been on an absolute beast of a run since the bottom as demand for firearms increased during COVID.
We have some clear support levels going into what should be a solid earnings report on June 18th. SWBI is locked, loaded, and ready for gains, we just need to pull the trigger as we target the next resistance.
Support:
We have tested this level already, we may see another test, or we may simply move up from here, both work well for the bulls.
If S1 can't hold, the bulls will need to see the S2 orderblock and S/R flip hold. Although this level could work, it also opens the bulls up to a potential move to the downside as illustrated on the chart.
Earnings is only two days away, losing momentum going into earnings may still result in a nice move for the bulls, but what bulls really want to see is the rally into earnings (as that gives them more flexibility to say close part of their position before earnings come out). Given this, S1 and S2 are the only logical targets for the timeframe.
Resistance:
In a perfect world, the bulls see a move off of S1 right into the R1 prior S/R flip before earnings. This simple and quick play offers about 14% profit.
If the bulls can make it past R1, perhaps on earnings strength, then the R2 orderblock is the next point of contention and is a logical place to look at closing positions after earnings.
Summary:
Nothing wrong with being long term bullish on SWBI, but for those who are just playing the Portnoy pump your ideal play here is a quick trade, in-and-out before earnings. For those a little more bullish, earnings is likely to be impressive and we could see R1 or R2 hit after depending on what happens leading up to the 18th.
What you don't want to do is try to be a hero and go bull below S2, riding the momentum makes sense, but being late to the party could mean ending up being bear food.
Resources:
www.earningswhispers.com + www.theguardian.com + www.fa-mag.com
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AOBC may be poised for recovery tomorrowAmerican Outdoor Brands Corporation plunged after its recent earnings beat, but it has some trendline support at the current level. Recovery tomorrow would likely mean it forms a new upward parallel channel. I've bought in here with fairly tight stops, and we'll see what happens.
AOBC retracement offers buying opportunityAOBC opened way up, around the $10.00 level, and then retraced a lot further than I expected, to support at about $9.37. This is a good price to grab for a likely slow gain throughout the day. AOBC posted a great earnings beat yesterday, but mixed guidance-- thus the retracement.
$AOBC WEEKLYSmith and Wesson changed their name to American Outdoor Brands... looks like they poised for a bull run IMO... if you like guns
Good buying opportunity on SWHCSWHC climbed quite high in anticipation of a Clinton victory, primarily because gun sales surged as people anticipated a future with tighter gun control.
With that being said Trump is very 2nd amendment friendly, and long term could be great for this stock.
Another key thing to watch out for is an upcoming name change for the company. The companies new name would be "American Outdoor Brands Corp". While it will never have the ring to it like Smith and Wesson will, this name would reflect the companies holdings outside of firearms and could suite the company well.
I'll be watching this stock for a bit. Might go down a bit more this week, but I see a lot of potential here.