BBY Trade on Feb 25, 2021 15:55 from Marius: Tradervue User Stock Trades.

Notable profit taking and sell-off for markets across the globe into the EOM. High short interest stocks back in play with sentiment group buying and short coverings. Yields tapping 52 week highs even with Fed indicating soft/temporary inflation and long away from QE. Economic reports still coming out strong along with earnings reports with more beats. Markets seem to be digesting good news to the downside. Consolidation and profit taking is in play within a more notable strong uptrend from a macro view.

Fundamental Analysis

BBY beat EPS 3.48 vs 3.45 but missed REV 16.94B vs 17.23B . They also raised its quarterly dividend from 0.55 to 0.70. They are carrying out their share buy back program of 2B through 2022. Gross margin is expected to decrease slightly guiding forward. Noting that this may be an investor + market reaction combined with guidance for heavier profit taking.

Quantitative Analysis

Intraday Fundamentals

RVOL 3.41
AVOL 2.94M
ATR 3.81
Short Float 2.87%
Shs Float 229.43M
Inst Own 81.10%
Market Cap 26.38B

Options Statistics + Tape Reading

SI 3.683
IV 42.37%
IVP 13%
P/C 0.856
VWAP 105.217

More volume on the call BID side + put ASK side order flow confirming direction. Notable large call selling in the AM session.

Options data stats/notes day prior to catalyst (n/a)

Options Positioning

OI 660
VOL 177
Delta .01
Theta -.03
Vega .00
Gamma .00
Prob T 2.39%
Prob ITM 1.18%
MMM +/- 2.699
IV Series 47.73%

Widened my strike to manage basket/full allocation positioning and risks. Capital is still able to put on automated signal trading on EOM index options.

Options data stats/notes day prior to catalyst (n/a)

Technical Analysis

IV drop here vs the other trades in the basket. Notable profit taking wick and downside momentum. Notable BID volume and comparable to 11/2020 earnings. 100 looks like a key area to test.

Critical overhead supply indicated by the lower VPOC traded range. Previous ER AVWAP also noted with price below. Showing a lot of supply overhead to absorb and may be on the higher time frame. Momentum is still to the downside. Notable value area for longer-term investors.

Trade/Risk Management & Review

EOM notable market sell-off on key earnings day. Managing risks responsibly and all A set-ups in my playbook. Size and risk on with a basket of stocks. Looked into shorting a back in play high short interest/market sentiment driven stock (GME) but the security was flagged/blocked by the broker for certain orders due to SSR and risk on the brokerage side. The model was indicating a favorable edge along with my discretionary analysis. I placed all orders after as this was the primary thesis but to be higher weighted and leading in my total allocations.

Overall grade B as I should have placed my strike closer at 115. Good scalp trade but was more on the conservative side. Looks like there could be more downside given the technical signals mentioned earlier.