BNGO trade ideas
Is BNGO Undervalued In The Short Term?NASDAQ:BNGO
TVC:RUT
EASYMARKETS:NDQUSD
In my previous articles I have talked about the fundamentals of BNGO and how I believe it is a strong company in the long term. For this reason I am choosing to hold a long position on BNGO. I added more shares at $4.00 today, increasing my long term holdings, and ability to sell covered calls. I trust that management will continue to grow the company, and that the future will be bright.
That being said, in the short term investors must find a way to make money in the rocky price movement of BNGO's stock price. We will speaking in a three month time frame for majority of this article. BNGO has faced a steady decline over the last few months with very little chance of breaking out, but on November 24, 2021 the price appeared to stop, with a huge influx of buyers into the price. this came after the stock began to free fall triggering limit buys to kick in. Everyday positive news comes out on BNGO and yet the price continues to decline, this causes fear into buying in. The large influx of buying suggests that people believe in the company, but are nervous about the short term potential of the company. Will the price continue to go down? I believe we will know within the next 2 weeks. With industry peers continuing to grow in price, the RUT (marked in orange) hasn't felt the same decline as BNGO in the last month, and has instead turned rather positive, suggesting momentum may be shifting. If BNGO can hop on the momentum shift of small cap stocks, the price may pull out of this down trend. We must also consider the NSADAQ which has felt a pull back since the start of November. With the overall market feeling the effects of a down turn, it is no surprise a stock so price elastic would be affected. after considering all these implications, we can realize that the price of BNGO is heavily based off the buyer mindset. If the next two weeks are good for both the RUT and NDQ, BNGO will rally along, if not BNGO will continue to fall as seller pile in and buyers dwindle out.
“Be Fearful When Others Are Greedy and Greedy When Others Are Fearful” - Warren Buffett
As today (November 29 , 2021 comes to a close, it appears BNGO has sold off more than it has been bought on the day, which is the first time since July 14, 2021. The latter date signaled the start of the steady decline we have seen. Is this an indicator of the continuation of tough times ahead, or is this the lack patience investors have, who will regret the move in the short term? Although times are uncertain, investors should always plan to hold for the long term, traders may come and go, and the bulls will always be there, but by protecting yourself against downside loss, BNGO should be the least of investors worries.
I am currently selling covered calls against my position on a 45 - 100 day basis, I am doing this to remain profitable on a diving stock. I am holding put options below the current price as a way to hedge against loss, and a major free fall back to 1$ or below. I bought more shares today as a way to further increase my ability to sell covered calls. I am unaffected by the short term price movement of the stock based off my suggested positions below.
Current Positions In BNGO:
Stock positions @5.97
Stock Positions @4.00
Short Call options @1.21 for a strike of $5, for 21-01-2022.
Long Put options @0.22 for a strike of $4, for 17-12-2021. This is to hedge against short term downside lost.
Long Put Options @0. 05 for a strike of $2, for 21-01-2022. to protect against a major free fall in price.
Short Call options @0.21 for a strike of $6, for 21-01-2022. This is my most recent addition to continue generating income on my long position- and to help pay for the continuation of purchasing put options against a free fall.
Finally Some Good News For BNGO??NASDAQ:BNGO
Has the down trend of BNGO finally come to an end? I am not one who believes in the reading of charts, I do understand the basis behind it though. The idea that humans exact in a certain way consistently, thus the charts should react in a similar way. I do not believe this is how people should invest, but I do understand the human tendency behind it. So if you want me to confirm your buy signals in this article, it is not the right one for you.
I would rather focus on what happened today and why, and what this means for the future. Today BNGO started off the day in a strong downward movement, hitting a low price of $3.73, followed by a close of $4.09. BNGO has been in a free fall in the last few weeks; my previous articles talk about this. I believe the dramatic drop in price today triggered many people, algorithms , and limit buy orders, to buy up this stock. The huge increase in volume today backs this claim; from an average of 9.3M to 12.81M today. As seen on the chart above I have highlighted the candlestick in which I am talking about. What does this mean for the price movement of the stock? TA would suggest this is the end of the downtrend, and I would agree to some extent.
To say that one strong day of buys is the end of a down trend is rather reckless thinking, but I would also argue that due to the intensity of the current downtrend, seeing a day of strong buying is a solid indicator that this may be our new floor. As mentioned in previous articles I believe in the sustainability and longevity of this company, and it will be interesting to see how the stock fair over the next couple of weeks. It is important to note that the NASDAQ and the BioTech industry has been down in this same period as BNGO; they are not standalone. If investors morale stays high towards this price it will increase buying power and create momentum in the direction long investors want it to go. That being said dollar cost averaging your way in, if you are a new investor to this company, is the way to go from here, as this stock is highly price elastic. The worst thing for the price of this stock would be a large spike in the upward motion, as it would trigger many people to sell who have held through this rocky road. In order to truly gain momentum in the up trend we will need to see gradual growth, gradual buying, No bad news, and a strong earnings report in March 2022.
Current Positions In BNGO:
Stock positions @$5.97
Short Call options @1.21 for a strike of $5, for 21-01-2022.
Long Put options @0.22 for a strike of $4, for 17-12-2021. This is to hedge against short term downside lost.
Long Put Options @0. 05 for a strike of $2, for 21-01-2022. This is my most recent addition to protect against a major free fall in price.
BNGO Struggles Continue...What's next? NASDAQ:BNGO
As the BNGO struggles continue well into the third week of November 2021, what are the takeaways, and what should investors plan for the future?
The Underlying
The company is on track to do at least $15 million in revenue over each of the next five years, the EPS will be cut down to the break even point very soon. The company is currently holding $38 million in cash; providing a safety net for their future. With only $25 million in total liabilities, and over $60 million in assets, the company holds a strong framework for profitability. The company currently has $16 million in long term debt; which is small for a biotech industry. BNGO currently has $2.7 million in Net receivables and $2.9 million in accounts payable. The company is in a strong position financially and is managed well by CFO Christopher Stewart.
Investors are becoming increasingly bearish towards BNGO, we have seen a week now of strong downturn. What is BNGO's bottom? While predicting a bottom on a stock that is so volatile and price elastic is nearly impossible, We can now see that BNGO has broken is previous support of $4.20. I am confident when I say, the price of BNGO may free fall to pre-pump levels. I am setting my next support target at $2.00. I believe that with the recent pull back of the NASDAQ, BNGO was majorly affected. It will be interesting to see what the price of BNGO will do as the NASDAQ turns back to the upside.
Current Positions In BNGO:
Stock positions @$5.97
Short Call options @1.21 for a strike of $5, for 21-01-2022.
Long Put options @0.22 for a strike of $4, for 17-12-2021. This is to hedge against short term downside lost.
Long Put Options @0.05 for a strike of $2, for 21-01-2022. This is my most recent addition to protect against a major free fall in price.
What Is Going On With BNGO?
NASDAQ:BNGO
What in the world is going on with BNGO? It seems as if no matter the news the stock goes down. For a company that is set to record their highest earnings ever, the stock movement does not reflect that. For smaller cap stocks this common, stock pumps, hedging, shorts; all play a role in the price. Why is the stock going down? Earlier this year Wallstreet Bets pumped the stock, it is likely that investors see this as an over valued stock. In the short term they may be right, but investors are failing to understand the potential in this company.
The Underlying
The company is on track to do at least $15 million in revenue over each of the next five years, the EPS will be cut down to the break even point very soon. The company is currently holding $38 million in cash; providing a safety net for their future. With only $25 million in total liabilities, and over $60 million in assets, the company holds a strong framework for profitability. The company currently has $16 million in long term debt; which is small for a biotech industry, PLTR a major competitor holds close to $200 million in debt. BNGO currently has $2.7 million in Net receivables and $2.9 million in accounts payable. The company is in a strong position financially an is managed well by CFO Christopher Stewart.
With the company fundamentally on the path to success, why is it that stock is doing so poorly? Investors clearly believe this stock is overvalued for the current state of the company. I hope to see a bottom of $4.20, but I understand that the company could drop below it's pre-pump under $1 valuation. BNGO dominates the genome mapping industry, and will be the major supplier to governments all around the world. The company has huge upside potential, but may be overvalued in the short term. The negativity amongst investors drives fear into buyers, continuing to push the price lower. As the 25% of institutions gain more confident in the company and increase their positions (Blackrock, Vangaurd, ect...), the stock price will thrive.
I am currently holding long on BNGO, and in the mean time generating cash buy selling covered calls. I currently have stock positions @$5.97, and Short Call options @1.21 for a strike of $5, for 21-01-2022. I have now added long put options @0.22 for a strike of $4. This is to hedge against downside lost.
BNGO When will the struggles end??BNGO has had its fair share of troubles in the last few months, the stock was pushed during the meme stock pump and dump phase earlier this year. What's next for BNGO?
BNGO is by no means a short term hold, the company has been working hard in the industry to provide advancements in OGM (Optical Genome Mapping). Although holding a $1.48B market cap, with a 52 week high of $15.69, BNGO has suffered flat bearish movement in the recent months.
With 24.99% of shares held by institutions, this is a strong buy for the long term. I believe that the lack of recent growth comes from the failure to be profitable. With the current year only offering $0.06 in revenue per share, and the operating cashflow being at -$58.41M, it is important to note the company does hold $38.449M in Total cash, the most in companies history. Could they be holding for major research to increase their current assets above $50M?
The options Contract market is healthy for this company and stock volatility continues to stay high, It amazes me with an average of 8M shares being traded everyday, that we do not see larger movement in price, this could indicate that moving into the future this will be a stable stock. The true test will be if they will offer dividends to their share holders in the future.
Potential support at 5. Explosive play, with support at 5. Be aware of the decending triangle forming on weekly chart.
BNGO Downtrend BreakoutThe Motly Fool just came out with a nice article on this stock
The Motley Fool noted that Bionano Genomics’ non-sequencing-based optical mapping technology known as the Saphyr System was designed to rapidly characterize extremely long strands of genomic DNA. And the company recently acquired leading genomics data analysis software company BioDiscovery. This acquisition could be a “game-changing business development move for the company and its shareholders,” says The Motley Fool report.
It was a perfect time to cause a downtrend breakout and kick off a rally.
It's kind of messed up how publishers can manipulate stocks like this but such is the game.
Save half for a buy in on a dip to test the top of the trendline.
Targets $9 , $12 , ATH+
BNGO -- How about 5-10x by EOY?If the fractal plays out, Bionano could be in for some Q4 fireworks. Worth a punt!
Bionano wyckoff Looks like bionano could see some explosive growth soon due to a strong accumulation pattern
BNGO ready for a breakout?Bionano Genomics, it is in the field of gene sequencing.
The company`s product, Saphyr, uses optical genome mapping to help detect structural variations in gene sequencing.
Bionano recently acquired BioDiscovery for $100 million, which is a leader in clinical software production.
The acquisition may facilitate adoption of the Saphyr system, in $4 billion market segment.
I see a strong support at this level and an upside, according to BTIG Research of $10 per share.
$bngo inverse head & shoulders inside falling wedge Looks very bullish
Inverse head and shoulders
Falling wedge
Closed with a hammer on trendline indicating reversal
BNGO - Wait For The Trigger!Hello everyone, if you like the idea, do not forget to support with a like and follow.
BNGO is approaching a support area so we will be looking for buy setups on lower timeframes.
on H1: BNGO formed a valid channel in red and a reversal pattern. But it is not ready to go yet.
Before we buy, we want the buyers to take over.
Trigger => Waiting for a momentum candle close above the gray area to buy.
Meanwhile, until the buy is activated, BNGO would be overall bearish can still trade lower.
Good luck!
All Strategies Are Good; If Managed Properly!
~Rich
$BNGO - I like everything about this set upBNGO has a great run with other small caps last year. It has not been able to push past this trendline but hopefully this time it does. Be smart with your stops. I bought the $6c 11/19 expiry. RSI looks great and the consolidation to this point should allow it to push forward past this resistance at $5.5. Disclosure - while I own those calls, it has a terrible 2 out of 10 ranking from Thompson Reuters. Anything 3 and under I cannot buy for clients. GLL!!
BNGO - Potential Bullish Reversal!Hello everyone, if you like the idea, do not forget to support with a like and follow.
BNGO is approaching a support area so we will be looking for buy setups on lower timeframes.
on H4: BNGO is forming a channel in red but the upper trendline is not valid yet, so we are waiting for a new swing high to form around it to consider it our trigger swing. (projection in purple)
Trigger => Waiting for that swing to form and then buy after a momentum candle close above it (gray zone)
Meanwhile, until the buy is activated, BNGO would be overall bearish can still trade lower.
Good luck!
All Strategies Are Good; If Managed Properly!
~Rich
BNGO analysis weekly and monthlyBNGO, unsure of where it is headed next. Looks like a wedge pattern is forming. Could break out and go up or break down and keep heading down
$BNGO --- patiently waitingLove the stock and the company so got nothing else to do but wait this out. Holding about 20k shares.
Short-term PT --- R1 $6.53 R2 $6.72 R3 $7.63-7.67 ... Near-term PT ~ $13.52 ... Long-term PT ~ $40-60 (let's settle on $50).
Let me know what you guys think.
BngoLong shot here. Could
Be a double bottom. Worth a swing trade setup with stop below 5.04. I’m buying for a long swing.
BNGO - Time to shoot up!Hey everyone,
I hope you are doing fantastic!
$BNGO has presented us with an amazing set-up inside a channel.
We are currently sitting at the bottom of it and we have 2 TP ($8 and $10)
An amazing Risk-Reward with SL just above the channel.
I wish you all happy trading!
BNGO - Potential Bullish Reversal!Hello everyone, if you like the idea, do not forget to support with a like and follow.
BNGO is approaching strong daily support in green so we will be looking for buy setups.
Before we buy, we want the buyers to prove that they are taking over again.
You don't want to buy a bearish market right?
on H1: BNGO is forming a channel in red but our upper trendline is not valid yet, so we are waiting for a new swing high to form around it to consider it our trigger swing. (projection in purple)
Trigger => Waiting for that swing to form and then buy after a momentum candle close above it (gray zone)
Meanwhile, until the buy is activated, BNGO would be overall bearish can still trade lower.
Good luck!
All Strategies Are Good; If Managed Properly!
~Rich
BNGO possible move to the upsidejust now
Breakout from triangle formation, but rejected by bearish channel and currently testing the top of the channel. Also very strong resistance from May in 6. 01 holding the price down. Last time price broke through this resistance it rose to resistance i 9.10. With strength from the triangle formation breakout, it's possible that price can overcome the two resistances and yet again test the resistance in 9.10, This is an increase of 50%. However it's possible that price will fail and fall back to the bottom of the channel, this is a possibility to get in at a lower price, however it is not sure that i will break out of the channel. On the weekly chart there is a flag formation forming and price could possibly be rejected around 6.60, fall back to the support of the flag, and then possibly break out. Safe position will be when price breaks flag formation on the weekly and a more risky entry will be when price breaks out of the channel on the daily.
