GAPGoing to entering a small position on GAP.
Strong media output recently with KATSEYE/GAP
After looking at financial and forecasting i see a true market value at 26.22
Entered 21st Nov calls 24$
GAP trade ideas
GAP Earnings Jackpot? 75% Bullish Call Setup Into AMC!
# 🚀 GAP Earnings Play (8/28 AMC) 🚀
💰 **Bullish Call Setup – 75% Conviction** 💰
### 🔥 Thesis
* 📈 4 straight EPS beats (avg +29% surprise)
* 💵 Strong margins & \$2.2B cash cushion
* 🔮 Technicals bullish → Price \$22.30 > 20/50/200 MA
* 📊 Options flow: heavy \$23C OI, hedging on \$20P (bullish skew)
* 🌎 Low VIX (14.9) supports directional move
**Conviction: 75% (Moderate Bullish)** 🎯
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### 🎯 Trade Setup
* **Ticker**: \ NYSE:GAP
* **Direction**: CALL
* **Strike**: \$23.00
* **Expiry**: 2025-08-29
* **Entry Price**: \$0.61 (ASK)
* **Entry Timing**: Pre-earnings close (8/28 AMC)
* **Size**: 1 contract (risk \$61)
---
### 📏 Risk / Reward Plan
* 🛑 **Stop Loss**: \$0.30 (-50%)
* 🎯 **Profit Target**: \$1.83 (200%) → \$122 profit per contract
* ⚡️ **Breakeven**: \$23.61 (+5.9% move)
* ⏰ **Exit Rule**: Within 2 hrs post-earnings open OR hit target/stop
---
### 📌 Scenarios
✅ **Bull Case**: EPS beat + guide up → Gap to \$24.5–25.5 → Calls \$1.83–\$2.40 (200–300%)
➖ **Base Case**: Inline → stock \$21–23 → IV crush → stop \$0.30
❌ **Bear Case**: Miss → stock <\$21 → calls near 0
---
### 🤝 Model Consensus
* Claude: \$22C @0.99 ✅
* Gemini: \$23C @0.61 ✅
* Llama: \$23C @0.61 ✅
* Grok: \$22C @0.97 ✅
📊 **All bullish (72–78%)** → Only debate = strike (\$22 vs \$23)
---
🚦 **Final Call**:
👉 BUY \ NYSE:GAP 8/29 \$23C @0.61 BEFORE 8/28 CLOSE
⚡️ Quick exit post-print to dodge IV crush
---
\#️⃣ Hashtags:
\#EarningsPlay #OptionsTrading #GAP #CallOptions #TradingSetup #StockMarket 🚀📊
$GAPNYSE:GAP currently broke its uptrend due to earnings. However, I'm still bullish on ticker since it has multiple entry points and solid upside targets. Stop losses can be micro-managed right under buy zones.
📌 Entry Points:
1️⃣ ~$22
2️⃣ ~$21
3️⃣ ~$18
🎯 Profit Targets:
✅ ~$24
✅ ~$26
✅ ~$29
Trade Setup Summary:GAP (GPS)🔻
Trade Type: Short
Ticker: GAP (GPS)
Timeframe: 30-Min Chart
Pattern: Rising wedge breakdown (bearish signal)
📉 Entry Point:
Around $27.39
Price hit resistance and broke the rising wedge trendline (yellow circle shows breakdown)
🔒 Stop-Loss:
Above $28.45
Above recent swing high and wedge invalidation
🎯 Take Profit Targets:
TP1: $26.31 (first support zone)
TP2: $24.99 (major horizontal support)
⚖️ Risk-Reward Ratio:
Risk: ~$1.06
Reward: ~$2.40
R:R ≈ 2.3:1 (solid potential for short trade)
🔍 Technical Highlights:
Bearish rejection at resistance
Rising wedge broke with increasing selling pressure
Price overextended from previous base
GAP eyes on $22.xx: Proven Resistance zone could End BounceGAP struggling to recover from the tariff tantrum.
It has bounced back to the pre-tariff price level.
This would be a good spot of bears to step in heavy.
$ 22.21-22.31 is the current and previous resistance.
$ 23.21-23.45 is next resistance for back up or stop loss.
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GAP Options Ahead of EarningsAnalyzing the options chain and the chart patterns of GAP prior to the earnings report this week,
I would consider purchasing the 19.50usd strike price Puts with
an expiration date of 2025-3-7,
for a premium of approximately $1.02.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
GAP Post Q1 2024 Earnings (part 2)The time has come. New ticker symbol, same story, my thesis remains unchanged despite the macro environment. I think GAP is in a good position to remain within this large megaphone like channel and I think that those who did their due diligence and believed in GAP will be rewarded.
In terms of position, I'm going 95% shares and 5% calls. I have definitely capitalized on today's low open.
I expect a good year for GAP but If I'm wrong, I'm willing to accept the loss.
GPS Entry SignalA strong bulllish momentum is being witnessed, especially from the Ichimoku Indicator
Gap Anticipates Revenue Growth in Q2 ReportGap Inc., a leading global retailer, is poised to release its Q2 earnings report after today's market close, projecting a revenue increase to 3.63 billion USD, marking a 2% rise from the previous year. The company also anticipates an increase in earnings per share to 0.40 USD, up by 0.06 USD from last year. Additionally, preliminary data suggest a nearly 3% growth in same-store sales. Since the start of the year, Gap's stock has seen a moderate increase of 11%, and a positive quarterly report could further catalyse the stock's upward trajectory.
Technical analysis of The Gap, Inc. (NYSE: GAP)
Exploring potential trading opportunities based on the technical setup of Gap's stock ahead of its earnings announcement:
Timeframe : Four-hour (H4)
Current Trend : the stock is exhibiting an upward trend within an ascending price channel on the H4 chart
Short-term Target : the immediate upside target is positioned at the resistance level of 25.40 USD
Medium-term Target : breaking past the 25.40 USD resistance could lead to further price appreciation towards the yearly high of 30.74 USD
Key Support : currently established at 22.24 USD
Reversal Scenario : should the stock breach the key support level at $22.24, it would negate the bullish outlook, potentially driving prices down to around 20.00 USD
Market outlook
Gap Inc. shares are currently trading near the support line of the ascending price channel. A robust earnings report could provide the necessary momentum for the stock to continue its upward movement, possibly approaching annual highs near 30.00 USD. Investors and traders should closely monitor the reaction to the post-earnings which will likely set the tone for the stock's short-to-medium-term trajectory. A positive outcome could reinforce the bullish trend, while any negative surprises might prompt a reassessment of the stock's growth prospects.
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GAP is ready for a series of PRICE GROWTH!GAP is registering significant net positive volume this past few weeks -- in anticipation of the company's turnaround story in terms of bottomline which it did after the company posted a surprise profit due to business re-organization after last Month's earnings result.
The stock is sitting at a strong solid support at 8-9 area -- a 1.0 FIB level area where buyers converge. Expect price to bounce from this range.
Weekly histogram has created higher lows conveying incoming reversal to the upside.
Spotted at 8.5
TAYOR.
Safeguard capital always
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FUNDAMENTAL NEWS: Reference Barrons.
Gap’s Surprise Profit Gives Stock a Boost
By Sabrina EscobarFollow
May 25, 2023 5:09 pm ET
Gap’s same-store sales fell by 3%.
Gap stock surged on Thursday after the company posted a surprise profit.
The apparel retailer posted adjusted earnings of one cent a share in the quarter, better than consensus estimates for a loss of 16 cents a share, according to FactSet. While revenue of $3.28 billion declined 6% compared with the previous quarter, it was in line with the company’s and the Street’s projections.
Same-store sales fell by 3%, more than forecasts for a 2.4% decline.
For the second quarter, Gap (ticker: GPS) is expecting net sales could decrease in the mid- to high-single digit range from the year-ago quarter’s $3.86 billion. Current estimates have Gap’s second-quarter sales down by roughly 5% year-over-year. For fiscal 2023, net sales could decrease in the low to mid-single digit range.
Despite the decrease in sales, Gap believes margins will grow in both the second quarter and the remainder of fiscal 2023. First-quarter adjusted gross margins increased 5.7 percentage points compared with the previous year.
Gap stock jumped 16% to $8.61 in after-hours trading.
The company is currently reorganizing its business to improve profitability. Earlier this year, it announced it was cutting 1,800 corporate jobs in addition to 500 jobs culled in September.
“While the macro and consumer environment remain uncertain, Q1 underscores our ability to deliver improvements to the business including share gains at Old Navy and Gap Brand, adjusted operating margin expansion, reduction in inventory, and strength in our balance sheet,” said interim CEO Bob Martin in a statement.
Gab heading towards WAVE 54hr RSI is in a deficit. I am going to assume that it will have a green day tomorrow if the NYSE stays green.
