SWBI Smith & Wesson Brands Options Ahead of EarningsIf you haven`t sold SWBI before the previous earnings:
Now analyzing the options chain and the chart patterns of SWBI Smith & Wesson Brands prior to the earnings report this week,
I would consider purchasing the 11usd strike price Calls with
an expiration date of 2025-3-21,
for a premium of approximately $0.52.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
0HEM trade ideas
SWBI Smith & Wesson Brands Options Ahead of EarningsAnalyzing the options chain and the chart patterns of SWBI Smith & Wesson Brands prior to the earnings report this week,
I would consider purchasing the 12.5usd strike price Puts with
an expiration date of 2024-9-20,
for a premium of approximately $1.35.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
@SWBI Close to Breaking Down$SWBI Looking to break a support area. I will be looking to short this one on a break below the $13 area with a stop just above the blue support / resistance area. Next logical support area is down in the high $8.xx range which represents over a 30% decline. See notes on Chart. Lots of reasons this stock could tumble, fundamentals include slowing EPS and sales along with the ever-present regulatory issues. Ideas, not investing / trading advice.
If you take a trade like this, make it your own. This idea inspired by a post from @Yogigolf here on TradingView.
Do gun stocks benefit from the regulation debate?With every mass shooting incident in the US calls for stricter gun control legislation grow. But paradoxically, mass shootings also lead to a surge in purchases of firearms, as Americans arm up for their own safety and over concerns that certain types of guns may become harder to purchase in the future.
Stockpiling guns and gun stocks
As consumers stockpile firearms in the wake of shooting massacres, investors also pile into stocks of gun manufacturers.
On May 25, the share prices of gun manufacturers shot up after an armed 18-year-old stormed a public elementary school in Uvalde, Texas, shooting dead 19 children and two teachers.
Smith & Wesson (NASDAQ:SWBI) and Vista Outdoor (NYSE:VSTO) jumped 6.9%, Sturm Ruger (NYSE:RGR) rose 4.1%, while American Outdoor Brands (NASDAQ:AOUT) climbed 7% on that day.
Stocks of these companies have also risen since US President Joe Biden took office as tougher gun policies get more attention under Democratic administrations.
“The gun manufacturers have spent two decades aggressively marketing assault weapons which make them the most and largest profit… For God’s sake, we have to have the courage to stand up to the industry,” Biden said in a speech at the White House shortly after the Texas incident.
Loose regulations
Prior to the Uvalde shooting, Texas Republicans have repeatedly loosened curbs on gun sales in recent years, according to local daily The Texas Tribune. In 2021, lawmakers passed a law allowing people to carry handguns without permits, less than two years after mass shootings in El Paso and Odessa in which 30 were killed.
Gun debate drags on
Despite the number of mass shootings (and gun violence in general), Americans and lawmakers remain polarized over gun control laws. Senators recently noted that efforts to pass bipartisan legislation are making progress as Republicans appear to be more amenable to changing the laws.
A recent Reuters/Ipsos poll of 940 people conducted online has found that nearly two-thirds of Americans support moderate or strong curbs on gun ownership, including 53% of Republicans. The poll was conducted a day after the Uvalde shooting.
The best intraday opportunity today (SWBI)Today's trading idea is focusing on NASDAQ:SWBI
The stock is gapping down to $14.5 (pre-market) after worst than expected EPS and sales results.
The stock broke a major support level and now pre-market trading is below that level.
The idea is to go Short at the open when it will try to move higher and fails. (What we call a gap and Go)
SMITH & WESSON Breakout long! $SWBIThis is a great spot for a long entry. $SWBI has broken out of it's channel and is looking to make a MASSIVE leg up!
Smith & Wesson Brands, Inc. is a holding company, which engages in the manufacture, design, and provision of firearms. Its portfolio includes handguns, long guns, handcuffs, suppressor, and other firearm-related products. The firm's brands are Smith & Wesson, M&P, Thompson/Center Arms, and Gemtech. The company was founded by Horace Smith and Daniel Baird Wesson in 1852 and is headquartered in Springfield, MA.
*Not Financial Advice*
Smith and Wesson Brands due for a local correction. SWBI.A huge impulse if forming. It literally shot off for this gun manufacturer, and we are not done yet in the general scheme of things - just that we are foreseeing a local correction.
This is a reflection using technical analysis + only and we do not consider valuation and macro factors at this stage.
The Fibonacci targets going down are highlighted in purple with invalidation in red. Fibonacci goals, it is prudent to suggest, are nothing more than mere fractally evident and therefore statistically likely levels that the market will go to. Having said that, the market will always do what it wants and always has a mind of its own. Therefore, none of this is financial advice, so do your own research and rely only on your own analysis. Trading is a true one man sport. Good luck out there and stay safe!
SWBI hitting two support levelsAfter a big move out of the long-term triple top, we pulled back to the 50ma and the .618 fib retracement. This is also in line with the market after today seeming like the bottom to the market correction that occurred last week. This may also have red to green/ green to red tendencies given how one sided the swings were and today was a green day. Looking for a move back to 30.