Mar. 9, 2022
The Trade Plan:
I am going to keep a pretty tight leash on this trade. If it breaks the $61 level, I will exit with a loss. I am aiming for low-$70’s as an initial target on the upside and possibly even $78 if I am lucky in the next couple of weeks.
The Trade Details:
- Higher-risk “spicy” idea: CHWY Nov 5 2021 67 Call near $1.30
- More conservative “mild” idea: CHWY Nov 12 2021 62 Call near $4.20
CHWY Chewy Inc. (CHWY) March 2022 - Bullseye Pick of the Week
This Bullseye trade of the week was CHWY. The stock took off after the alert was issued and ran up to a high of almost $80 dollars a share before retracing.
Original Alert went out on October 25, 2021.
CHWY is starting to find a base above the low-$60 support level that it has been building for a few weeks now. I might be a little bit early, but I think this is a good time to start to build a position.
Additionally, there is a Bull Flag pattern that is forming and if there is a breakout to the upside the measured move suggests there is a bit of room for the stock to run before the bulls take out profits.
This target level also correlates with a prior support level which could become future resistance for the bulls, suggesting that the bears will be waiting to jump back in at those price levels.
So, why am I doing this?
I think CHWY is going to be a strong stock into the end of the year as funds begin to “bargain shop” for overlooked ideas that have room to run.