$BBBY Bed Bath & Beyond perfect Fibonacci Support
Despite what looked like a capitulation in the aftershocks as a result of the company guiding down for the quarter,
they stock found support on a key level that shows despite the reason for the decline FIBONACCI is very often respected.
If you find yourself on the receiving end of a selloff, the golden pocket could save the day for you.
Always advisable to have the area marked out on your charts, as when panic sets in, you will be prepared.
BBBY trade ideas
$BBBY LONG$BBBY 2020 long targets $20- $25.
Company working on paying off bad debit, selling off secondary businesses as well as implementing new store strategies to drive consumer traffic.
New CEO is very accomplished.
This company could possibly become a very good comeback story.
+ They have cash in the bank to execute. Monitoring long
Buyback Bullish for Bed Bath & Beyond $bbby
Upside target $13.45
Bounced of fibonacci as predicted as selling was overdone once again.
Huge short interest at 43%
Bed Bath & Beyond announced its fiscal 2020 capital allocation strategy, which will include an estimated $1B of spend balanced across capital return to shareholders, debt reduction, and reinvestment in the company's core business operations to drive growth. The company has a strong cash position, including the expected net proceeds from the sale of PersonalizationMall.com announced earlier today, the proceeds from the sale-leaseback transaction announced in January 2020, and anticipated cash from operations. Bed Bath & Beyond's President and CEO Mark Tritton said, "The financial strength of our business allows us to take the important steps needed to return capital to our shareholders and reduce our debt, while at the same time also investing in our customer. This balanced approach to the use of our capital is expected to enhance shareholder value, improve the in-store and online experience and position our Company to achieve our long-term objectives to deliver sustainable growth." The company's fiscal 2020 capital allocation strategy is expected to include: Capital return to shareholders (share repurchases and dividends) and debt reduction of up to approximately $600M in the aggregate, with a heavier weighting towards share repurchases, and all subject to business and market conditions. The company's existing $2.5B share repurchase program has a remaining authorized balance of $1.2B. Capital expenditures in the range of approximately $350M-$400M, primarily for investments in stores, IT and Digital projects, and supply chain infrastructure. Going forward, the company expects to maintain a strong cash position, creating future financial flexibility. The company is continuing to work on a number of transformative initiatives as part of its strategic plan for the business, further supported by this capital allocation strategy. The company also expects in the near term to deliver further SG&A savings, with mid-to-longer term savings in cost of goods primarily related to the implementation of owned-brand strategies, sourcing re-negotiations, and further optimization of its supply Source thefly.com/
BBBY - overreaction creates opporunity?NASDAQ:BBBY price is destroyed this morning, based on some ugly sales numbers for the chain.
However, stock was more than punished for all the problems in recent years. So key question is whether future turnaround would be succesful?
If it is, now might be actually good time to buy, and technical picture potentially supports it. If inverted H&S would be formed, price should bottom not far from current levels, I am entering.
OPENING: BBBY FEBRUARY 21ST 15 SHORT CALL... for a .51 credit; scratch at 1.81; cost basis of 14.19 if assigned on the 16 shortie; delta/theta 47.23/1.94, .79 extrinsic.
Notes: This was naturally one possible outcome for my "Wheel of Fortune" short put (See Post Below). Not hugely keen to take on the stock, but we'll see how it goes.
BBBY on the run to 18?I used Chandelier Exit indicator as an additional confirmation/conviction to my entry.
15.7 looks like a respected level so I had and entry there.
Chop is bullish
RSI is steadily rising
Probable to run to 17.7 highs and may break it.
Since I had an earlier entry, entering now is still ok, just adjust r/r to proper support levels as shown.
Targets 17, 17.4, 17.7
Stop at 15.1
$BBBY Bed Bath & Beyond textbook retrace Technical perfection within the after-hours action in BBBy.
Earnings report was very negative, algos dropped the stock over 20%, stop losses triggered but then
the decline hits the daily price action level (blue line) and the 50% Fibonacci retracement level where orders gobbled up the stock.
THE WEEK AHEAD: BBBY EARNINGS; XBI, GDX, IWMEARNINGS:
BBBY (62/79) announces earnings on Wednesday after market close. Because of its size, I would go short straddle if of a nondirectional bent: the February 21st 16 is paying 3.18 at the mid (.80 at 25% max).
Pictured here, however, is a bullish assumption "Wheel of Fortune" at the money short put in the February cycle paying 1.55 (.78 at 50% max). Max is realized on a finish above the short put strike, with profitability being realized on anything above 14.45. From a trade management standpoint, I generally leave these alone until a test of the break even, at which point I sell delta cutting call against in anticipation of being assigned and then work it as a covered call from that point forward.
An alternative play: the February 21st 15 monied covered call, 13.92 debit (which is your cost basis in the shares and your break even). The max profit on this is less generous, coming in at the difference between what you paid to put the play on (13.92) and the short call strike at 15 or 1.08 max, but has a higher probability of profit metric.
EXCHANGE-TRADED FUNDS (SHOWING FIRST EXPIRY IN WHICH THE AT-THE-MONEY SHORT STRADDLE PAYS GREATER THAN 10% OF THE UNDERLYING SHARE PRICE):
GLD (46/13), January '21
SLV (40/21), July
XBI (40/27), March
GDX (39/26), March
TLT (38/12), January '22
GDXJ (38/32), May
I would personally lean toward the funds paying in shortest duration, which would be either GDX or XBI, with the GDX March 20th 27/32 short strangle paying 1.18, .59 at 50% max, delta/theta -2.63/theta 1.58, and the XBI March 20th 82/105 short strangle paying 2.12, 1.06 at 50% max, delta/theta .65/3.82.
BROAD MARKET (SHOWING FIRST EXPIRY IN WHICH THE AT-THE-MONEY SHORT STRADDLE PAYS GREATER THAN 10% OF THE UNDERLYING SHARE PRICE):
EEM (37/18), September
QQQ (20/17), September
IWM (15/16), August
SPY (3/13), September
Short duration obviously isn't paying and even August is a long time to wait for your candy (e.g., in IWM), where the IWM 145/183 short strangle is paying 4.77, delta/theta .58/2.60, where 10% max (.48) or 25% max (1.20) might be sufficiently compelling to put on a trade.
FUTURES:
/GC (46/13)
/SI (40/20)
/6C (38/6)
/NG (27/43)
/6A (32/8)
VIX/VIX DERIVATIVES:
VIX finished the week at 14.02 and term structure trades remain viable in the February, March, and April expiries, where the /VX futures contracts finished trading at 16.70, 16.87, and 17.32, respectively. For all other derivatives, I would continue to wait until VIX print >20 to go short (call me picky).
Bed Bath & Beyond earnings trade The upcoming earnings will tell us more about turnaround story
Yield attractive at 3.8%
Short interest remains high at 48%
Bed Bath & Beyond, Inc. engages in the operation of retail stores and retails domestics merchandise and home furnishings. It operates through the Bed Bath & Beyond, Christmas Tree Shops, Christmas Tree Shops andThat!, Harmon or Harmon Face Values, buybuy BABY, and World Market, Cost Plus World Market or Cost Plus brands. Its products include domestic merchandise and home furnishings such as bed linens and related items, bath items, kitchen textiles kitchen and tabletop items, fine tabletop, basic house wares, general home furnishings, and consumables. The company was founded by Warren Eisenberg and Leonard Feinstein in 1971 and is headquartered in Union, NJ.
BBBY - DAILY CHART Hi, today we are going to talk about Bed Bath & Beyond and its current landscape.
Bed Bath & Beyond is poised to receive increasing attention from the market as relevant events are taking place. The American chain of domestic merchandise retail stores announced that it is going to start a major restructuring, as six senior leaders are leaving the company. At first glance, the decision is positive for the company that can be built a more efficient structure, but this quantity of changes might mean trouble for the company fo this holiday season.
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LONG BBBY 13.85 - 13.00 - 12.50Looking for a drop on BBBY to take it long. Trending up and entering on the different support levels combined with fib retracements.
The stock has a potential fundamental upside with mayor company turnaround in play. Looking for a good entry point because seeing this stock
at 20.00 in the next 2-4 months is not a long shot. Maybe sooner. If it goes below 12.50 I will be out and re-enter at a better level.
Safe trading.