Lots going on with this stock, but I think we are at a prime time to buy for any bulls out there.
The play:
The risks:
That 2.92 support seems VERY strong. BLDP has contracts with big transportation companies and the military. If you are really worried, put your stops around 2.88 to minimize loss.
Trump somehow bans something. This is risk for every stock, but the EPA specifically could change the game overnight and somehow make oil really desirable in the short term.
- Following a cycle of lows on the 8th of the month and highs near the 27th of the month
- Support at 2.92, resistance at the 200DMA
- While subtle, range contraction with RSI and MACD targeting this time period to break out
- Fib verticals show downturn at each new phase, in line with projected "money box"
- BLDP loves range contraction and then popping out 2-5%
- PLUG recent earnings generated nearly 20% jump - BLDP is main supplier for PLUG and will benefit this quarter from their success
- Earnings expected 7/31, creating catalyst for breakout in either direction
The play:
- Accumulate shares now between $2.92 and $3.14. Day trade it if you want as it brushes the bottom of the BB and the 200DMA.
- Sell any puts below $3: not a lot of risk here that it goes below 2.92 without big news, sell puts without any risk until earnings
- Sell calls with strike above the 200DMA, without news it will remain below or around that line - you don't risk losing any profit even if they come in the money
- All of this with expiration dates before 7/24
- I plan to come into earnings with 200 shares and several spread calls 8/18 exp from $3-5 strike. Watch the market between now and then - on the downturns, the calls will be cheap for 8/18 EXP.
- Buy a spread of calls with targets at 3.69 and 4.46, and sell 2 puts with strike below 3 to help cover. Even if earnings are bad, you get $3 support shares.
- The call selling strat here will depend on the current price, again, leverage small trends to garner better prices - but sell 2 calls to lock in gains on impulse wave 1 and be ready to re-up on the correction
The risks:
That 2.92 support seems VERY strong. BLDP has contracts with big transportation companies and the military. If you are really worried, put your stops around 2.88 to minimize loss.
Trump somehow bans something. This is risk for every stock, but the EPA specifically could change the game overnight and somehow make oil really desirable in the short term.