TL;DR: This idea more based on the events that lead up the price action than any fundamental or technical analysis.
The reason for all the decline was a few things, a primary one being that AMZN was entering the same space as $SFIX (competition all around, it's a competitive marketplace). There was also concerns about growth continuing given the competition and a customer base issue (YOY growth was not expected to continue at their current rates). To me all of these seemed sort of moot and non-factors, they were posting good growth and beating expectations almost every earnings call so ... why would the change just because some analyst downgraded them and discredited their previous results ? I haven't met anyone who used AMZN for the same services as SFIX and lastly.... the real reason I entered this trade was... I like to gamble.... volatile stocks nearing earnings at reasonable prices .... generally my weakness.
So gamble I did.... and my $1.40 ...$25.50 calls 06.07.2019 sold for .... $4.00 this morning.
This stock that has proven to be super volatile when earnings publish, and today proved that's probably not going to change anytime soon.
Think this was a shot in dark? Did you enter similar to me? Is my blind luck about to run out? Let me know in the comments below.
The reason for all the decline was a few things, a primary one being that AMZN was entering the same space as $SFIX (competition all around, it's a competitive marketplace). There was also concerns about growth continuing given the competition and a customer base issue (YOY growth was not expected to continue at their current rates). To me all of these seemed sort of moot and non-factors, they were posting good growth and beating expectations almost every earnings call so ... why would the change just because some analyst downgraded them and discredited their previous results ? I haven't met anyone who used AMZN for the same services as SFIX and lastly.... the real reason I entered this trade was... I like to gamble.... volatile stocks nearing earnings at reasonable prices .... generally my weakness.
So gamble I did.... and my $1.40 ...$25.50 calls 06.07.2019 sold for .... $4.00 this morning.
This stock that has proven to be super volatile when earnings publish, and today proved that's probably not going to change anytime soon.
Think this was a shot in dark? Did you enter similar to me? Is my blind luck about to run out? Let me know in the comments below.