BA 150 call, 2/7 expiry - earnings 2/3
Stock has been consolidating after sharp move up. The yellow trend line provides a good base for the next leg up. One option contract costs less than $150 as I write this. Look at the daily chart and see how stock can easily get to 150 if it closes over 130. Of course price could also drop before earnings (back to daily 20sma); for this trade I suggest a stop losses based on how much you are willing to lose, instead of on stock price alone, or both. Keep trade size small; it will be easier to hold through volatility. I am holding calls for $150 price target, and I might hold a few contracts through earnings.
Note
CORRECTION - Title should say BYND for Beyond Meat, not BA.My apologies for the major error; house rules prevent me from correcting it.
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I am holding my calls for earnings.With a small position I can still hold with a high % loss.
Stock broke below yellow support line in chart, but on daily chart stock has just come down to 10sma. weekly puts should be exited or position reduced.
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On the daily chart you will see Friday's selling brought the stock down to the 20sma (simple moving average), and RSI is still over 50. I have only call option at the 150 strike so I am willing to hold it through earnings in case the stock price shoots up on a good report. If not, my principal loss is small.I noticed price had come down to support on Friday and call options were cheap, so I bought 120 strike calls expiring 2/7 at $1.10 each.
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I goofed! Please accept my apologies if you have read this post and/or followed the trade. The actual earnings date is March 2. In my notes the "3/2" became flipped to "2/3"If you have been trading long enough, you will at some point have a loss (or maybe a gain) due to some kind of mistake. This is another reason why keeping position size small is important.
I will keep my 120 calls because the stock can easily bounce of 20sma support this week coming up.
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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.