Bed, Bath & Beyond Inc. stock trades under the ticker BBBY & has recently displayed solid technical strength & is worth taking a look at for a short-term trade opportunity.
BBBY stock closed at $24.73 on 10/26/2020, coming off of two strong gap up days in October (10/1 & 10/14).
BBBY has options, so I may think to look at their $24.50 calls & puts (11/20/2020 expiration).
Buying the call that is slightly already in-the-money has a Delta of 0.56, with the put being a 0.44; both options will decay at a similar rate with thetas of -0.04.
Their vega is 0.026, which is helpful given that we are about to see a rise in volatility, so a trader can profit off of the calls faster, and as the market gets to be a little shakier cash out of them & sell a call that is just out0of-the-money, while keeping the put position to profit from during the turbulence.
BBBY Stock Price: $24.73
10 Day Moving-Average: $24.23
50 Day Moving-Average: $16.07
200 Day Moving-Average: $10.93
RSI: 82
Looking at BBBY’s stock chart, it appears as if they are beginning to lose some steam, hence the already in-the-money calls look more appealing to buy & sell for the quick profit, before selling an out-of-the-money call that will likely have a difficult time ever becoming worth anything.
Overall, there seems to be a lot of good opportunities for a short-term trader to capitalize on with BBBY stock & its options.
*** I DO NOT OWN SHARES OF BBBY STOCK ***