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BBBY

$BBBY W4 retrace and W5 push to $30$BBY looks like its completed W3 at the 2.618 extension after a really deep W2 that nearly retraced 100%. Its also hit the 1.786 extension on the FibFork. This along with the Stoch RSI and RSI being extremely over bought, it looks ready for a W4 move down. Because it such a deep W2 and an extended W3, i think it will have a shorter W4, not retracing fully to the 0.382 level. Instead i think we see a stop at 0.236, which also lines up with the median of our FIbFork. From there we can proceed to W5, anywhere from 23.6% to 50% beytond W3 high. This puts W4 buy zone rite around 25.50 and a W5 PT of $30-$32. The time analysis show W4 coming in around Jan 19-20 and W5 around Jan 25-26....this makes sense to me cuz of the potential for political noise around Bidens inaugeration. Might creat some choppy and uncertain conditions, but once he's sworn in we could see a surge in volume due to the prospect of future stability and stimulus aid.
NASDAQ:BBBYLong
by ir-rizzle
THE WEEK AHEAD: BBBY, MU EARNINGS; ICLN, SLV, XLE, IWM/RUTEARNINGS: I've culled down all of next week's earnings announcements to options highly liquid underlyings where the 30-day is >50% and am left with two potential candidates for volatility contraction plays: BBBY (23/99/26.3%)* and MU (23/53/14.0%). BBBY announces on Thursday before market open, so look to put on a play in the waning hours of Wednesdays session; MU, announces on Thursday after market close. Pictured here is a delta neutral short strangle in the February cycle (49 days), which was paying 1.27 at the mid price as of Friday close with break evens wide of two times the expected move on the call side and slightly above the 2x on the put and delta/theta of -1.07/3.12. Naturally, you can see the call side skew here, with the similarly-delta'd short put 3.76 away from current price, but the call 7.24 away, so the underlying may merit a look at alternative plays that take advantage of this. In contrast, the shorter duration January 15th 15/22.5 (14 days) was paying 1.02, with delta/theta metrics of .21/7.91, with the natural trade-off's being less room to be wrong, but a quicker resolution of the trade should you be right. With MU, I'd look at a Plain Jane 2x expected move short strangle, which here would be the January 15th 68.5/85, paying 1.71 or the February 19th 62.5/90, paying 2.30. EXCHANGE-TRADED FUNDS RANKED BY PERCENTAGE THE FEBRUARY 19TH AT-THE-MONEY SHORT STRADDLE PAYS AS A FUNCTION OF STOCK PRICE: ICLN (9/51/15.0%) SLV (33/48/13.6%) XLE (23/41/11.4%) XBI (27/39/11.2%) EWZ (14/39/11.1%) GDX (15/38/11.1%) XME (14/38/10.7%) BROAD MARKET: IWM (25/31/8.1%) QQQ (19/27/7.1%) SPY (15/22/5.4%) EFA (20/21/5.2%) BOND FUNDS: TLT (16/18/4.4%) (Yield: 1.609%) HYG (7/13/2.0%) (Yield: 4.917%) EMB (4/7/2.0%) (Yield: 4.024%) AGG (28/8/1.7%) (Yield: 2.252%) * -- The first number is the implied volatility rank or percentile (i.e., where 30-day implied is relative to where it's been over the last 52 weeks); the second, 30-day implied; and the third, what the February 19th at-the-money short straddle is paying as a function of stock price.
NASDAQ:BBBY
by NaughtyPines
2
THE WEEK AHEAD: MU, BBBY EARNINGS; XOP, GDXJ, SLV, EWZ, KRE, XLEEARNINGS ANNOUNCEMENT VOLATILITY CONTRACTION PLAYS: MU (27/57/10.8%)*, announces Tuesday after market close. BBBY (32/105/20.2%), announcement Thursday before market open. Pictured here is an MU October 16th 44/55 short strangle, paying 1.52 as of Friday's close (.76 at 50% max). For those of a defined risk bent: the MU October 16th 40/45/52.5/57.5 iron condor was paying 1.74 at the mid as of Friday's close, (.87 at 50% max). For BBBY, I'd probably go short straddle, skinny short strangle, or skinny iron condor with the October 16th 14/15 skinny short strangle paying 2.46 as of Friday's close (.62 at 25% max), and the October 16th 10/14/15/19 4-wide paying 2.02 (.51 at 25% max) with risk one to make one metrics. OPTIONS LIQUID EXCHANGE-TRADED FUNDS SCREENED FOR >35% 30-DAY IMPLIED AND RANKED BY PERCENTAGE THE NOVEMBER (56 DAY'S) AT-THE-MONEY SHORT STRADDLE IS PAYING AS A FUNCTION OF STOCK PRICE: XOP (16/54/17.8%) GDX (22/54/17.0%) SLV (39/48/14.4%) EWZ (19/44/14.1%) GDX (21/43/14.1%) XLE (26/41/13.5%) SMH (24/40/11.3%) BROAD MARKET: QQQ (33/34/10.9%) IWM (31/34/10.6%) SPY (21/26/8.3%) EFA (22/24/7.1%) DIVIDEND GENERATORS FOR THE IRA SCREENED FOR THOSE WHERE THE NOVEMBER AT-THE-MONEY SHORT STRADDLE IS PAYING >10% OF STOCK PRICE: SLV (39/48/14.4%)** EWZ (19/44/14.1%) KRE (27/44/14.2%) XLE (26/41/13.5%) MUSINGS: With the major binary event of the year approaching (U.S. general elections), I'll be attempting to resist the urge to trade in the margin account and will flatten that completely running into the October monthly expiry. The intent was to wind that account up prior to year end, so now is as good a time as any. With retirement approaching, my medium to long-term focus will be turning to IRA trades in a cash secured environment, with the focus on exchange-traded-funds with dividends and the general go-to strategy being short put, acquisition, and covering, resorting to highly liquid single name only in the event that sector and broad market volatility totally dry up. I'll continue to grind on those broad market/exchange-traded fund trades through the election as long as volatility hangs in there, naturally keeping some powder dry in the event that a high volatility event presents itself. This basic approach has worked well over the years, and I see no particular reason to change it now, even though it has zero sexiness and can be slow going, particularly if you're not the patient type. My current stock positions are in SPY (covered call), TLT (covered call), IYR (covered call), and EFA (covered call). In addition, I've got short puts or short put ladders deployed in QQQ, IWM, SPY, SLV, EWZ, KRE, XLE, GLD, and HYG. Previously, I was hesitant to dump my stock positions or allow them to be called away due to their paying dividends, but may change my tune, particularly with SPY, where the dividend is a paltry 1.76% relative to what the 30-day 2 x expected move short put is paying currently. Naturally, what a given option will pay will depend on where the implied volatility is at the given moment, but here the 2 x expected move short put nearest 30 days is the October 26th 305, paying 2.60 or .86% ROC at max (10.32% annualized). The basic question is whether it's generally worth it to hang out in shares when you don't have to, even if you're getting a little extra something something if you've covered.*** Short puts, after all, make money regardless of whether the stock goes up or sideways and can even make money if the market goes down, assuming that your break even isn't broken; stock only makes money if it goes up. Short puts can be rolled to reduce cost basis further; once you're in stock, you're married to the position. I guess I'm trying to talk myself into allowing my shares to be called away ... . :-) * -- The first metric is the implied volatility rank (i.e., where 30-day implied is relative to where it's been over the past 52 weeks); the second, 30-day implied volatility; and the third, the percentage the October at-the-money short straddle is paying as a function of stock price. ** -- Neither SLV nor GLD pay a dividend. *** -- The 2 x expected move short call nearest 30 days is the October 26th 346, paying 1.56 or 18.72 annualized, which also far exceeds what you'll receive in SPY dividends on an annual basis (currently 5.681/share or $568.10 per year for a one lot).
NASDAQ:MU
by NaughtyPines
BBBY 14$hello yall alright so other at home covid stocks have been killer during earnings. The gains have not been super high but if they beat expectations then they will most likely become bullish. Found a dollar gap in the chart that is the open space. BBBY has been trading around the same line for the past couple of months. It formed a breakout and was unable to hold. It dropped and found some support and came right back. For the past two weeks it has been trying to break out of its shell. Will monitor volume during Monday and Tuesday for confirmation. expecting a pullback tomorrow and then a nice rally Tuesday into Wednesday's earnings. The doji candle from Thursday shows the buyers aren't strong enough yet. Monday will determine the pattern trend. Feeling confident in their earnings. this is not financial advice. I am learning and I apologize if the outcome isn't what I predicted. Use to your discretion
NASDAQ:BBBY
by tunripboyo
THE WEEK AHEAD: BBBY EARNINGS; XOP, XLE, EWW PREMIUM SELLINGEARNINGS: Next week's earnings announcements are light, with options liquid underlying to play for volatility contract even lighter. BBBY (52/119/18.8%*) announces on Wednesday after market close, so look to put on a play before the end of Wednesday's session. Pictured here is a July 17th (12 days) 11 short straddle, paying 2.03 as of Friday close, 18.8% of where the stock was trading at 10.81. Look to take profit at 25% max or otherwise manage the trade by rolling out to August if it doesn't work out fairly immediately. DAL (43/89/12.3%*) also announces this week on Thursday. A July setup isn't paying much, so I'd be inclined to go out to August to make it more compelling, where the 23/36 short strangle paid 1.83 as of Friday close. EXCHANGE-TRADED FUNDS ORDERED BY RANK/PERCENTILE AND SCREENED FOR >35% IMPLIED: EWW (37/37/15.0%**) EWZ (37/56/10.5%) GDXJ (34/53/14.6%) XLE (33/45/14.6%) GDX (28/39/12.7%) XOP (22/57/16.3%) USO (9/51/13.2%) The most bang for your buying power buck appears to lie in XOP, followed by EWW, XLE, and GDXJ. BROAD MARKET: IWM (41/36/10.0%) IWM is the only broad market exchange-traded fund where the background implied remains greater than 35. IRA DIVIDEND GENERATORS: EWZ (37/56/10.5%) ... and EWZ the only dividend generator with a 30-day greater than 35. * * * Broad market volatility has come in quite a bit here, but SPY 30-day implied at 27.2% isn't exactly a "low volatility environment" either. Nevertheless, it's not a bad thing to sit back, let powder dry out a little bit in preparation for the next volatility wave and/or more productive earnings announcements, particularly with underlyings like NFLX, MSFT, and IBM announcing next week, along with a number of financials: C (36/55), WFC (45/54), BAC (33/48), JPM (32/43), MS (30/45), and GS (27/41). * -- Percentage of stock price the July 17th short straddle was paying as of Friday close. ** -- Percentage of stock price the August 21st short straddle was paying as of Friday close.
NASDAQ:BBBY
by NaughtyPines
$BBBY Time To Start A Position$BBBY reported earnings yesterday and the market liked what was said on the earnings call. The stock is trading up pre-market and we think the worst is over for the company. A lot of the enthusiasm is the turnaround being put in place by the new CEO, who was former CMO of $TGT. For example, the Bed Bath &Beyond digital business is seeing net sales growth of more than 90% for the month of April to-date. $BBBY is well-positioned to weather the coronavirus crisis. The Company ended fiscal 2019 with approximately $1.4 billion in cash and investments, an increase of approximately 39%, compared with approximately $1.0 billion in cash and investments at the end of fiscal 2018. We look at $BBBY as a long-term play and will buy any pullbacks. Good luck to all!
NASDAQ:BBBYLong
by InsiderFinancial
2