BYND Trade on Nov 10, 2020 15:50 from Marius: Tradervue User Stock Trades.

Big Picture
Market re-opening trade starting to fade into today. QQQ still weak and stay at home names seeing further decline. KRE and XLF seeing strength along with value plays. Growth still relatively strong in the longer-term at the moment.

BYND had some pretty interesting price action the day prior. MCD reported with a new product called the McPlant on Monday without mentioning BYND. BYND was sold then later clarified that MCD was working with BYND. The price action resembled the "Bart" (Bart Simpsons head shape) price action seen also in cryptocurrencies in the past where price sharply moves in opposing directions consecutively in equal amounts with a compression time period in between. Seems equal positions adjusted and readjusted as far as from a supply/demand. Can also mean low liquidity and or institutions controlling more of the float.

Fundamental Analysis
The company reported their earnings today and investors took it negatively. Missed on EPS and guided lower citing Q3 vs. Q2 weakness due to covid-19 changes in retail purchasing. People not as inclined to stock up on food and supplies. Their products for restaurants and commercial were also showing slow signs of recovery. Their partnerships with brands and retailers are notable but investors unsure at the moment with the reports figures. This can change going into next year and if/when these fundamentals materialize to show growth in the future.

Quantitative Analysis

Intraday Fundamentals

RVOL 6.397
AVOL 4.639M
ATR 10.34
Short Float 12.5%
Inst Own 33.4%
Shs Float 54.58M
Market Cap 7.82B

Options Statistics

SI 5.256
IV 68.97%
IVP 23%
P/C Ratio 1.042
VWAP 121.809

Options Position Metrics

OI 2,105
Vol 1,853
Delta .01
Theta -.05
Vega .00
Gamma .00
MMM 9.415

Adding MMM (market maker move) to the metrics here. This is seen on the options chain top right corner. This is the implied move for this contract with the correlated IV at 94.13%.

Tape Reading

Noting the large call selling and put buying in the AM session. This shows potential bearish momentum activity for the day and possibly into EOW.

Technical Analysis

From the longer-term view 125 is an important inflection level. Price close just above today by 0.01. Momentum is still to the downside but this seems like a great area for longer-term buyers with the defined level of risk. Volume profile confirms this level.

View from the weekly showing the bearish price action and volume.

"Bart" price action then fade into close. ER report and selloff. Market participants really offsides on this one. Explains the lower institutional ownership for the time being.

Trade Review

Trade expired OTM and BYND ended up closing below 125 which is a notable inflection level. There may be more down side bias here with that technical close despite the market trading higher end of the week. Also noting the day after earnings the decrease in volume. Price did trade above 125 but not enough control for the buyers. Seems like more sellers currently. It is also trading below AVWAP from ER day + 2 day vwap. May keep this on the radar for next week if major support breaks below.

Probably would have traded this larger if I allocated more capital towards the trade. Another good earnings trade in the books.