CHWY trade ideas
CHWY side ways continuation patternCHWY - side ways continuation pattern. Wait for breakout on the upside of the rectangle ($52.14)
THE CHEWY CasesHey investors, CHEWY is in a compression zone, who is trying to break up his car could try to go back where he went up to get his highest.
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must wait for the breakoutwill grab some in the money calls on this when it breaks the top line, need to be patient so time decay doesnt kill you, goodluck
$CHWY - Continuation Diamond$CHWY
UPDATE after flag proved to be extremely bullish.
Will use the upper fib level of $47.50 as next level of support and $44 below that.
We can make the argument that a continuation diamond pattern has emerged. I would set an alert to buy if it reaches $52 as the next breakout leg is pointing to $59
I remain bullish on $CHWY.
CHWY52 is a tough level. I would wait for CHWY to break and hold over 52 to go long. I would use a tight stop loss if CHWY breaks under 52.
If CHWY fails at 47.55 it can fall to 45.70, 43.89.
I would go long over 52, or go short under 50, or you can wait for it to break under 47.55.
*There was lots of Bullish Flow on Friday.
FIBCHWY sitting at the -23.6% fib profit lvl that was achieved on the most recent cycle up. Now watching see if 47s support holds for a push over and up
CHWYAs far as valuations go, the Price/Sales ratio is 2.74x. That is much richer than the industry average of 0.95x, as well as the broad market’s 1.78x. However, the projected sales growth approaching 30% far exceeds the industry’s average of 4.1% and the S&P 500s 1.56%.
With the huge surge in demand for online products and services, companies that deliver will be in a position to benefit. The risks still remain that online giants like Amazon could prove to be serious competition. Still, this is a great time for stocks like Chewy’s to gain market share.
Buy Area @ 41.10 (0.382 ) or @ 39.69 (0.618 ) its a Confluente area of Fibnodes avarage ( 41.10+39.69=80.79:2 = 40.39
NYSE:CHWY
CHWY longNoteworthy bullish options activity in $CHWY 51c for 6/26 with some small put protection coming in later in the day.
Fibonacci bb setup with bullish engulfing daily candle, post ER profit taking CHWY is a strong brand, ppl love the service...
Targeting 51+ for next week, possibly eow
Enjoy...
Trade at your own risk.
I took 20 contracts will update trade later.
CHWY - I Can't let my chihuahua starveAlthough, I don't order off of Chewy frequently, I have in the past (especially for toys and stuff because they are so reasonably priced). They are owned by PetSmart and PetSmart will honor Chewy prices in the store (they won't honor amazons, go figure). I think buying Chewy was a super smart investment for PetSmart and although they paid a hefty price, they invested in the future.
There are so many great things about this company. Offering everything you need for your pet at a reasonable price AND it is an ecommerce play. There is massive potential here and I don't think this one will slow down in a pandemic (this may actually accelerate it's long-term growth). I think it is just getting started.
It looks like we could be completing a third wave and I drew a potential bull flag that may form. This could be a reasonable price around 47.50 and I will be watching very closely. In this market, I don't trust anything. This is not financial advice. Let me know your thoughts!
OPENING: CHWY 43.5/60 SHORT STRANGLE... for 2.28.
Notes: Had to fiddle somewhat with the put side versus my "Week Ahead" post. Still high rank/implied at 74/89 ... .
Chewy Earnings came in and, it's a MISSED . I don’t expect a big move tomorrow morning, but, let’s get into the chart, we are going to look at the daily. The question is does chewy break out and, make a support here or roll over and find a mini support in case of a pull back. I don’t think that traders should reflect on the earnings and I think the chart is an buy.
Short then longHoping the stock price falls after earnings today or soon so that I can pick it up a little bit lower. Then I will hold it long
CHWY EarningsCHWY Earnings play
+ve earnings outcome target - $57.5
-ve earnings outcome support - $43
Chewy, Inc earnings potential targets
Potential upside target for a earnings beat $54
Downside support sits at $46.00
Very high short interest of 27%
Company profile
Chewy, Inc. engages in the provision of pure-play e-commerce business. It supplies pet medications, food, treats and other pet-health products and services for dogs, cats, fish, birds, small pets, horses, and reptiles. The company was founded by Ryan Cohen and Michael Day in September 2011 and is headquartered in Dania Beach, FL.
THE WEEK AHEAD: CHWY, LULU, PVH EARNINGS; GDXJ, XOP; VIXEARNINGS:
CHWY (71/85/17.34%)* announces Tuesday after the close.
The June 19th 41.5/60 17-delta short strangle pictured here pays 2.55 with break evens wide of the expected move. The similarly delta'd July 17th 39/65 gives you more room to be wrong, but doesn't pay that much more for the wait -- 2.48 at the mid.
LULU (36/57/10.01) and PVH (57/85/14.8) announce Thursday after market close, but have less than ideal volatility contraction play metrics.
SECTOR EXCHANGE-TRADED FUNDS SCREENED FOR >35% 30-DAY WITH JULY SHORT STRADDLE PRICE AS A FUNCTION OF SHARE PRICE:
EWW (37/38), <10%
GDXJ (36/53), 13.74%
GDX (33/43), 11.12%
TQQQ (30/77), 17.7%
XLE (30/39), <10%
EWZ (29/48), 11.75%
XOP (17/49), 12.4%
GDXJ looks to be the most productive from the premium selling standpoint, although we're getting on the short side of duration for July (40 days until expiration).
BROAD MARKET EXCHANGE-TRADED FUNDS WITH JULY SHORT STRADDLE PRICE AS A FUNCTION OF SHARE PRICE:
IWM (39/35), 8.66%
EFA (28/25), 5.50%
QQQ (22/25), 5.93%
SPY (21/24), 5.43%
IRA DIVIDEND EARNING EXCHANGE-TRADED FUNDS SCREENED FOR 30-DAY >35%:
EWZ (29/48)
VIX/VIX DERIVATIVES:
The /VX July contract finished the week at 27.21, with the VIX July 22nd 27/29 short call vertical paying .75 at the mid and the 27/30, nearly a buck at .95. Going out farther in time to take advantage of contangoized term structure here doesn't net you much additional juice, unfortunately. /VX August finished the week at 27.25 -- only .04 above August. September traded at 27.70, but the 27/29 pays only .65, probably due to the fact that the VIX of the VIX (i.e., VIX implied), slopes away, with nearer term implied being higher than those of longer duration.
In "derivative land," the VXX July 29/30 is paying .38, the 29/31, .71, and the 29/32, .99. UVXY is probably also paying 1/3rd the width for similar setups, although options pricing is showing wide in the off hours ... .
* -- The first metric is implied rank; the second, 30-day implied, and the third, the percentage of share price that the nearest monthly at-the-money short straddle is paying (i.e., the LULU June short straddle is paying 10.01% of share price, the PVH June short straddle, 14.8%).
CHWY - 6/3/2020CHWY - Latest ichimoku chart shows a strong momentum, not only both tenkan sen and kijun sen are above cloud, but the thick green cloud ahead interprets more buyers ahead than sellers. RSI shows overbought apparently so this upside could be a s/t move that corresponding with the 6/9 earning release, as well as the sharp increase buying on 6000+ contracts of 7/17 $70 call options this morning.
