BBBY
SHORT BBBYI'm short BBBY under 48. I expect this to roll over after the massive wick that printed today.
Ryan
BBBY rebound after H&SYeah it got two downgrades today but since when do we care what PT's the big guys throw out.
This is as bullish as a chart gets and this chart follows patterns. I shorted the H&S and would like to ride it back up.
WEEK OF 1/4 -- EARNINGS TO PLAY VIA OPTIONS: MON, BBBY, WBAAlthough I traditionally see earnings season as beginning with the first play in the alphabet (AA), there are some that occur before AA that I've frequently played. Next week, it's MON, BBBY, and WBA. MON announces earnings on 1/6 before market open (look to put on that play before Tuesday NY close); WBA, 1/7 before market open (put on Wednesday before market close); BBBY after market close on 1/7 (Thursday).
MON's implied volatility rank is currently 63, has an implied volatility of 31, and a short strangle appears to offer nearly 1.00 in credit ($100 per contract) for a 93/104 short strangle, Jan 15th expiry (currently .97 at the mid price).
BBBY (rank 49/implied 45) needs to have its implied pop a bit to make it 1.00+ attractive; I generally only like to play these when the implied volatility rank is high (70+) and it's implied is kind of right in the middle of its 52-week range right now.
WBA (rank 83/implied 41): the 78.5/91.5 Jan 15th short strangle is currently going for 1.05 at the mid price.
I looked at other earnings announcement plays for next week (CUDA, FINL, KBH, HELE, for example), but none of them look particularly attractive for an options strategy because liquidity is poor on the options end of things and/or the underlying doesn't offer weeklies.
Head and Shoulder Bed Bath and Beyond BBBY has formed a classic head and shoulders reversal pattern. With poor guidance and an update on recent estimates this stock is likely going to continue going down for the next 3-9 months. Consumer spending seems to be shifting away from this store as more people are buying retail goods online. The so called "Santa Claus" rally is likely going to leave investors even more disappointing. I'm looking for a bounce around the $36 previous support.
BBBY Long Term trend reversal (Head and Shoulders) (56 by Sept.)A clear head and shoulders pattern has appeared.
Target $56 by September
Moving average crossover and acceleration bands correlate strongly with head and shoulders pattern.
Possible long term short if it hits neckline
BBBY Day Trade (Brad Reed Jan9,2015)BBBY expected to open at 75.50 for a Perfect Gap N Go. Watch out for support/resistance at 75.40 To learn to trade this strategy for free, go to www.RealLifeTrading.com
