Theory: Long Positions Only
2019 price pivots:
One: $7.00 (top of current price box)
Two: $8.00 (top of Aug. gap, 1.23% fib level, daily and weekly resistance line, 50MA)
Personal preferred long options swing trade: Skewed Iron Condor (Premium Trade)
The skewed I.C. will swap the long risk to the short side, protecting our trade from an unusual long run in $BE. If this market expands beyond the expected move for Dec expiration, the skewed I.C. will ensure profits.
Concern: The skewed I.C. adds additional risk to the short side of this position. The breakeven price for this $BE trade is $6. 40
SWING TRADE: SELL -1 IRON CONDOR BE 100 20 DEC 19 8/9/8/5 CALL/PUT @1.60 LMT
Trade Entry: Sell spread for $1.60
Trade Exit: Buy spread back for $1.20
(Target profit based on I.C. 25% strategy)
Swing Notes: The options trade presented represents a multi-leg options strategy developed with probabilities and "TA" trade logic. This is a "probability trade", suited for "less experienced" traders who are looking to grow their options portfolio and their skill level. This type of trade logic should only be attempted after you understand the trade and have an understanding of the risks included. This "swing" strategy WILL NOT be profitable in 5 days and will most likely take 10 - 14 days to see profits. This type of trade logic should only be attempted after paper trading the strategy and finding a consistent win rate. Please seek professional coaching before attempting to "go live" with your trades.
DAY TRADE ONE: BUY SHARES (intraday)
Take long positions with a fade strategy, utilizing runners to seek scaled out profit opportunities and exit the entire position by EOD
ORB-5 minute breakout
Yesterdays high breakout
Fade Notes: While not as popular, the fade strategy is more suited to "less" experienced traders and offers opportunities for all market participants. This type of trade logic should be attempted ONLY after paper trading your strategy and finding a consistent win rate. Please seek professional coaching (or fully develop your own trade logic) before attempting to go "live" with your trades.
DAY TRADE TWO: BUY SHARES (intraday)
Take long positions with a scalp strategy, utilizing runners to seek scaled out profit opportunities. Exit entire position by EOD .
Scalp Notes: "scalping" as defined by Investopedia assumes trader takes an "overly large position" for a small price target. This type of trade logic utilizes advanced trade skills and should only be attempted by experienced traders who have perfected their scalping skills. While scalping is popular, the win rate is very low due to the inexperienced traders participating in "scalping strategies". Please seek professional coaching and paper trade your strategy before attempting to perform this trade.
Float : 71.02M | Short Float : 33.49% | Short Ratio : 8.28 | Avg . : 2.87M | I.V. Rank: 37 | I.V.: 93%
Short Interest Ratio Note:
The higher the short interest ratio, the higher the likelihood short sellers will help drive the price up. A short interest ratio of five (5) or better is a good indicator that short sellers might panic and instigate a potential short squeeze. This is where "scalping" potential exists. The anticipated situation will consist of short sellers riding this product higher and taking heat against their position. Once price breaks that $7.00 overhead resistance, these short sellers "could" begin to panic and buy back their positions to close the trade. Their activity increases the "buying" pressure and pushes price higher.
This product only has monthly options.
The bid / ask spread for these options is wide.
Dec and Feb have institutional trading activity, Jan does not (yet) have institutional activity.
The current implied has room to increase farther (or "drift" higher). A rise in implied will shunt or delay the decay in options premium, prolonging our time in the trade.
Broker ratings summary for $BE (https://stockbot.us/c/#ratings)
Start Date: 09/29/2020 End Date: 11/30/2019 Consensus: 1.6017
Buy: 4 Hold: 3 Sell: 0 Overweight: 1 Underweight: 1
Price Targets for $BE - Updated : 2019-11-08 (https://stockbot.us/c/#targets)
PT Avg . PT High PT Low Number of Analysts
11.06 22 3.5 8
Alternate Thesis: If $BE breaks $6.00 the long position trade logic will be void.