0. Quick notes to follow;
Comment:
5. And you SIT on the strangle until it breaks to one side, wait for a day of confirmation, and drop the other side of the straddle or strangle. Hold and do well. Maybe even convert to shares if it really runs and you like it. Or hold it for a short if it breaks down. You only need to pay for theta until something happens. Shouldn't be too bad on this stock, most volatility gone.
Comment:
6. And if this goes north, $18, if it goes south, the supply zone is $9.00. So that is major support and it would bounce.
1. This looks like a recent IPO stock or something;
2. Smile Direct Club, Think Cramer likes this one, and he said back on Sept 13, 2019, that the "pros outweigh the cons, but a tough buy at this point." The stock was at $18 at that point.
3. The stock is now at $13.92
4. This stock fell through the $13 to $14.25 channel back on October 8th, 2019, and never was able to regain the channel;
5. The stock attempted to on Nov 4, 2019, which if I had to guess, was earnings;
6. The next earnings is Feb 11, 2020. That was memory from a table earlier in the day. Pretty sure on that one. So going back a quarter, there was a run up to the last earnings;
7. Then it tanked to $8.00;
8. If you are in the stock in the $8 to $13 range, this is definitely a hold at this point;
9. It has been bouncing around that channel now from January 14th, over two weeks, and it can't break out;
0. This corresponds nicely to the virus outbreak and correction we had.
1. It appears this stock would LOVE to break out to the upside. If this stock (I have not had time for a full analysis on the network, so this is seat of my pants), i got from here:
en.wikipedia.org/wiki/SmileDirectClub
So they use 3D printing to make things for the dental industry/orthodontics, what have you, sounds great;
2. This stock is a toss up at this point, if it breaks out to the upside, and all the sellers have been washed out since the IPO, it could go $20+ and quickly; On the other hand, this stock has struggled since our Oct rally to consolidate and come back to the $13 range after a $20+ IPO in September. This stock could easily break the bottom of the channel and go sub $8;
3. All this being said, I feel like Cramer. Pros outweigh cons, but tough buy here. In it since $8 to $13, hold. If it break below $13 hard, then sell. If it breaks about $14.25, wait for $18+ to exit; If you are not in, I would not accumulate, or buy unless you know something about earnings on Feb 11th 2020.
4. This might be a nice straddle play and I bet options are cheap. It it smashed either way you might make out really nicely. Maybe a Strangle, 6 months out, real cheap, something that encompasses TWO earnings reports. I will look into this, might be a nice play.
- drchelsea