DevinBoyle55
Long

$SGMS Oversold After Retrace - Options play 5.25 to 1 Return

NASDAQ:SGMS   SCIENTIFIC GAMES CORP
$SGMS Looking oversold and due to bounce after a healthy 50% retrace of recent run up. After crushing earnings last month and seeing a moderate pullback recently...I think this stock is primed to resume its ascent. Targeting $32.00-$34.00 range by late April / early May.

If I was looking to play this with options...calls are looking fairly cheap OTM so I don't think a bull call spread would provide the best return on capital here. I'd be looking at an outright purchase of April 18 2019 $25.00 strike calls currently trading for $0.80 - I think there's plenty of time left for a move well above $25.00 by April 18th. With a break even at $25.80, if SGMS can just return to its recent high of $30.00 from Feb (which is very possible in 36 days to exp ) we're looking at $4.20 in profit for a nice 5.25 to 1 return.




Note: Informational, not investment advice.
I like the consolidation that has taken place and the solid move in volume on Friday.
Reply
EN English
EN English (UK)
EN English (IN)
DE Deutsch
FR Français
ES Español
IT Italiano
PL Polski
SV Svenska
TR Türkçe
RU Русский
PT Português
ID Bahasa Indonesia
MS Bahasa Melayu
TH ภาษาไทย
VI Tiếng Việt
JA 日本語
KO 한국어
ZH 简体中文
ZH 繁體中文
AR العربية
HE עברית
Home Stock Screener Forex Screener Crypto Screener Economic Calendar How It Works Chart Features House Rules Moderators Website & Broker Solutions Widgets Stock Charting Library Feature Request Blog & News FAQ Help & Wiki Twitter
Profile Profile Settings Account and Billing Send feedback Ideas Published Followers Following Private Messages Chat Sign Out