EGAN eGain Corporation Options Ahead of EarningsAnalyzing the options chain and the chart patterns of EGAN eGain Corporation prior to the earnings report this week,
I would consider purchasing the 5usd strike price in the money Calls with
an expiration date of 2023-9-15,
for a premium of approximately $1.30.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
Looking forward to read your opinion about it.
EGAN
EGAN, Aroon Indicator entered an Uptrend on Oct 13, 2020.Over the last three days, Tickeron A.I.dvisor has detected that EGAN's AroonUp green line (see chart) is above 70, while the AroonDown red line is below 30. When the green line goes above 70 while the red line stays below 30, this is an indicator that the stock could be poised for a strong Uptrend. For traders, this could mean going long the stock or exploring call options in the next month. Tickeron A.I.dvisor backtested this indicator and found 213 similar cases, 195 of which were successful. Based on this data, the odds of success are 90%. Current price $18.83 is above $13.06 the highest support line found by Tickeron A.I. Throughout the month of 09/11/20 - 10/13/20, the price experienced a +45% Uptrend. During the week of 10/06/20 - 10/13/20, the stock enjoyed a +27% Uptrend growth.
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on September 30, 2020. You may want to consider a long position or call options on EGAN as a result. Tickeron A.I. detected that in 88 of 110 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 80%.
The Moving Average Convergence Divergence (MACD) for EGAN just turned positive on October 05, 2020. Looking at past instances where EGAN's MACD turned positive, the stock continued to rise, Tickeron A.I. detected that in 33 of 44 cases over the following month. The odds of a continued upward trend are 75%.
Following a +16.50% 3-day Advance, the price is estimated to grow further. Considering data from situations where EGAN advanced for three days, in 187 of 236 cases, the price rose further within the following month. The odds of a continued upward trend are 79%.
eGain to Break $9.00 Starting in Q3 2020I purchased 58 shares of eGain today at an average of 7.68. Expecting it to break $9.0 by Q3 2020.
This company is undervalued. As a beginner trader, I am not able to articulate the technicals that can back this up but I am using this post so that I can review my pick down the road.
I completed research using the following resources:
" The 4 analysts offering 12-month price forecasts for eGain Corp have a median target of 11.50, with a high estimate of 15.00 and a low estimate of 8.00. The median estimate represents a +48.39% increase from the last price of 7.75." - CNN Business Forecast
RobinHood estimated earnings versus actual continuously shows that a ctual earnings, since Q3 2018 have been higher than estimated.
Previous Holding Experience with eGAN:
January 15, bought 50 shares at 6.38,
January 15 bought 8 shares at 6.41,
January 17th bought 2 shares at 6.95,
January 22, bought 66 Shares at 6.95,
Sold 126 shares at 10.67.
June 4th purchased 46 shares at 7.60,
June 24th sold 46 shares at 8.22.
Full Triangle Completed. 1/2 Entry At The Close
Earnings report wasn't that bad really, just disappointing. The stock was already up 1000% at one point, and Bank Of Montreal owned 30% of the shares back in December 2017.
I initially flirted with the idea of buying on Monday, or near the 78% line near the March/April consolidation area for $8.00ish, but decided against it due to the extent of the sell off. I also considered the fact that 81% of the shares were owned by institutions, who were up significantly.
You can see buyers attempt to accumulate on Sept.11th, but they got crushed, just like I suspected
I'm buying the close today, with the intention of holding the other half in case it goes lower so I can either bump out, or get a better average. Whether i fill the other 1/2 on the way up depends on the price action and volume
This is a swing trade, not a long term hold