$CHWY with a Bullish outlook following its earnings #Stocks The PEAD projected a Bullish outlook for $CHWY after a Negative over reaction following its earnings release placing the stock in drift C.
CHWY trade ideas
CHWY Chewy Options Ahead Of EarningsIf you haven`t bought the all time low:
Then you should know that looking at the CHWY Chewy options chain ahead of earnings , i would buy the $43.5 strike price Puts with
2022-12-9 expiration date for about
$2.46 premium.
If the options turn out to be profitable Before the earnings release, i would sell at least 50%.
Looking forward to read your opinion about it.
CHWY Bearish inclined naked calls 9 Dec expiryWhats The Plan/Trade/Thought
For the Month of Dec, I am looking to avoid the week of the 15 Dec, where there will probably be wilder price movement due to the Dec Fed rate hike. This is probably the start of the turning point and my strategy doesn't generally do well at turning points. I have no idea how the crowds will intemperate whatever news comes up.
While I still expect CHWY to post good earnings on the 8 Dec (One day before the expiry) I believe the 32% strike distance should be enough cushion. Option prices for 9 Dec, was also very good due to the earnings. Overall I am still bearish on the market and I do expect people to start tightening up their purchases and this includes their pets. They will focus on the necessities and not the extras.
What worries me is the CHWY's founder is Ryan Cohen and a meme stock drive would be very dangerous
Risk Mitigation
I see 47.51 as my indicator that my direction is wrong and I should exit
Can You Trade The Opposite Side (Y/N)
N
Trade Specs
Sold 210 Calls @ 0.24
Strike 55
32% to Strike
BP Used: 88k
Max Gain: 5040
CHWY 9/22/2022CHWY
Looking soft.
CHWY in existing downtrend under 200.
What looks like a Double top formed with a neckline support at 37.00
The neckline was broken, and price has pulled back to it. Price will look to continue downtrend.
Entry: 33.10
Stop loss: 39.45
Target: 23.15, +29.36%, 1.44 RR ratio
CHWY Huge Earnings SurpriseCHWY Chewy quarterly earnings of $0.04 per share vs Consensus Estimate of a loss of $0.12 per share. T
This represents an earnings surprise of 133.33%!!
Sales of $2.43 billion topping forecasts for $2.41 billion.
My price target is the $31 resistance for now.
Looking forward to read your opinion about it!
Can They Build Some Short Term Basing?As much as I want to be bullish on CHWY, I think it requires more and time price. Resistance is obviously at 31.95 and another upside level at 32.89 / 34.30. Downside remains the near support level at 31.34 and lower levels of 30.72, 30, and 29.20.
I'd be looking to see if the stock can begin to build on a base with large volume and continued higher closes from the prior close.
We will see how this plays out with the stock. Good thing for the company is they have outstanding service (as a customer) and pets will always require purchasing demands. But, like other retailers, CHWY has the hurdles of overhead, shipping, inventory, and much more.
I'll be watching to see how the price action revolves around the levels mentioned above. Just like healthcare; people will need to continue to feed their pets and acquire goods and services for them. So, how will economic conditions impact the purchasing power when it comes to 'finding the best deal'?
#3 Bullish Pattern: Cup and HandleRanked at #3 in the Bullish Pattern series is the Cup and Handle Pattern.
Cup and handle pattern typically takes many months to form but the pattern is unmistakable similar to a cup with a handle.
The pattern begins with a sell off with volume, tapering off and remaining flat before volume picks up and forms the right side of the cup.
There are 2 types of Cup and Handles.
U shaped -A longer, flatter bottoms provide stronger signal.
V shaped - V quickly recovers, should be avoided.
Handles decline can be up to 1/3 of the cups right side with traditional handle performing a test at the 50% retracement level.
The price target is calculated using the bottom of the cup and the handles breakout.
In the case of CHWY, the breakout to the price target is nearly complete (may already be in at 52).
The next bullish pattern is #4 The Bull Flag
CHWY moon incomingLast week this pulled back after 5 straight weeks of going up. From a strat perspective it is setup as a Bullish Randy Jackson.
Bullish Price Targets with a trigger above 42.70:
42.70 will take us to 47.49 and 52.39
Bearish Price Targets if the daily closes below 36.28:
$34.02 and the gap close around 30.
You can also get in if it holds the green zone (38.72-39.49)
Time to Buy CHWY 🐾 Yesterday Chewy (CHWY) 🐾 saw the largest volume in trading since the IPO in 2019.
It is firmly within the downtrending channel, bouncing off the bottom in fact, so if you order everything from pet toys to pet treats to kitty litter, this might be an area of interest to begin nibbling.
In this market, scaling into your position is the wisest thing a retail trader can do.
For example, if you plan on buying 100 shares total, start with increments of 10 or 20 shares on pullbacks until your position is complete.
*This strategy can be used for stock picking or options trading, yet beware of options premiums in this volatile market.
Good luck!
Zach B.
