TopOptionAlert
Oct 23, 5:53 PM
$CHWY NOV20 23C · in play
Zone:
$21.93 to
$22.24
Invalidation: close under
$21.67
Objectives:
$23.00, then
$24.00
The math: up 4.2% to the first objective and 8.7% to the second, against 1.9% risk on the invalidation, about 4.6 to 1 to the second.
Dear friend, picture a dog that finally learns to fetch after a long stubborn summer. That is Chewy. The stock sat near
$17 in June and has climbed back above
$22 this week, up 19 percent in the last month, and it now stands over its 50 day average near
$21.15 with most analysts still saying buy. This is a swing: we work the zone, the line underneath at the day's low says we are wrong, and the two round checkpoints above do the talking.
P.S. The 23 line is the whole trade: it is our strike, and a close over it turns this recovery into the next leg.
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