$SAM Boston Beer Co - Long Term Bull Flag
$SAM Boston Beer Company - Bull flag which began back in July has formed on the weekly chart. Long term price target $425-$450 area by December 2019.
Long term price projection dependent on continued strong earnings and market fundamentals into next year. Breakout to new highs next year will most likely require continued beverage innovation and possibly an additional small brewery acquisition (i.e. Angel City, Coney Island, Concrete Beach).
SAM 2019 options are for the most part thinly traded and expensive, but that doesn't mean there isn't opportunity. I'm looking at a December'19 390/450 bull call spread for a debit of about $600 per contract. Max profit = $6,000 or 10x.
If we can bounce from the current price level and eventually break out of the flag pattern to the upside, a strong break through the $325 level would be a solid confirmation. If we breakdown out of this bull flag and below the 50d ema on the weekly chart, I could see us down around $200 by end of February.
Note: Informational analysis, not investment advice.
Long term price projection dependent on continued strong earnings and market fundamentals into next year. Breakout to new highs next year will most likely require continued beverage innovation and possibly an additional small brewery acquisition (i.e. Angel City, Coney Island, Concrete Beach).
SAM 2019 options are for the most part thinly traded and expensive, but that doesn't mean there isn't opportunity. I'm looking at a December'19 390/450 bull call spread for a debit of about $600 per contract. Max profit = $6,000 or 10x.
If we can bounce from the current price level and eventually break out of the flag pattern to the upside, a strong break through the $325 level would be a solid confirmation. If we breakdown out of this bull flag and below the 50d ema on the weekly chart, I could see us down around $200 by end of February.
Note: Informational analysis, not investment advice.