Smart Money Preps Shrewd Options Strategy in Advance of CHWY Earnings Call

TipRanks

25 Mar

Some investment narratives are overly complicated. Fortunately, the case for Chewy (CHWY) — an e-commerce firm specializing in pet products — is straightforward. Americans love their four-legged ...

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One of the best stock trading platforms in Singapore.","ogImage":"https://c1.itigergrowtha.com/portal5/static/media/og-logo.be62fbe1.png","ogUrl":"https://www.itiger.com/news/2522002797"},"companyName":"Tiger Brokers"},"pageData":{"isMobile":false,"isTiger":false,"isTTM":true,"region":"SGP","license":"TBSG","edition":"fundamental"},"__swrFallback__":{"@#url:\"https://stock-news.skytigris.cn/v3/news\",params:#id:\"2522002797\",edition:\"fundamental\",,,undefined,":{"share":"https://ttm.financial/m/news/2522002797?lang=en_US&edition=fundamental","thumbnail":"","is_english":true,"pubTime":"2025-03-25 22:49","share_image_url":"https://static.laohu8.com/5f26f4a48f9cb3e29be4d71d3ba8c038","id":"2522002797","market":"nz","top_or_hot":-1,"title":"Smart Money Preps Shrewd Options Strategy in Advance of CHWY Earnings Call","media":"TipRanks","content":"<div>\n<p>Some investment narratives are overly complicated. Fortunately, the case for Chewy (CHWY) — an e-commerce firm specializing in pet products — is straightforward. Americans love their four-legged ...</p>\n\n<a href=\"https://finance.yahoo.com/news/smart-money-preps-shrewd-options-144943866.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Smart Money Preps Shrewd Options Strategy in Advance of CHWY Earnings Call</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nSmart Money Preps Shrewd Options Strategy in Advance of CHWY Earnings Call\n</h2>\n\n<h4 class=\"meta\">\n\n\n2025-03-25 22:49 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/smart-money-preps-shrewd-options-144943866.html><strong>TipRanks</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Some investment narratives are overly complicated. Fortunately, the case for Chewy (CHWY) — an e-commerce firm specializing in pet products — is straightforward. Americans love their four-legged ...</p>\n\n<a href=\"https://finance.yahoo.com/news/smart-money-preps-shrewd-options-144943866.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"CHWY","symbol_name":"Chewy, Inc.","start_time":0,"source_url":"https://finance.yahoo.com/news/smart-money-preps-shrewd-options-144943866.html","article_id":"2522002797","we_media_id":null,"thumbnails":[],"rights":{"source":"yahoofinance","url":"https://finance.yahoo.com/news/smart-money-preps-shrewd-options-144943866.html","rn_cache_url":null,"customStyle":"img, svg { display: none !important; }","selectors":"article","filters":"","directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2522002797","pubTimestamp":1742914183,"columns":[],"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Some investment narratives are overly complicated. Fortunately, the case for Chewy  — an e-commerce firm specializing in pet products — is straightforward. Americans love their four-legged friends. Not only that, but they have also consistently demonstrated a commitment to the animals in their care. Meanwhile, the stock’s share price is on a staircase climb higher, netting opportunistic bulls a healthy 123% gain since March last year. Moreover, a neat options strategy could net short-term opportunists excellent returns as Chewy’s earnings results will hit market wires this Wednesday.Discover stocks' market position with detailed  competitor analyses.An investor couldn’t ask for a better framework in the retail sector. Therefore, I am bullish on CHWY stock.To be fair, CHWY stock is trading at 1.28x its trailing 12-month  sales, which is elevated. However, when stacked against this year’s consensus revenue projection—which is arguably a very realistic target given the underlying fundamen","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"CHWY":"Chewy, Inc."},"translate_title":"聪明的资金在CHWY收益看涨期权之前准备精明的期权策略","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"CHWY":1},"content_text":"Some investment narratives are overly complicated. Fortunately, the case for Chewy (CHWY) — an e-commerce firm specializing in pet products — is straightforward. Americans love their four-legged friends. Not only that, but they have also consistently demonstrated a commitment to the animals in their care. Meanwhile, the stock’s share price is on a staircase climb higher, netting opportunistic bulls a healthy 123% gain since March last year. Moreover, a neat options strategy could net short-term opportunists excellent returns as Chewy’s earnings results will hit market wires this Wednesday. \nLight Up your Portfolio with Spark:\n\nEasily identify stocks' risks and opportunities.\n Discover stocks' market position with detailed  competitor analyses.\n\nAn investor couldn’t ask for a better framework in the retail sector. Therefore, I am bullish on CHWY stock.\n\n\n\nCatalysts Set to Bolster CHWY Stock\nInvestors are clearly concerned about the wider economy and, thus, the viability of risky, consumer-sensitive assets like CHWY stock. The Trump administration’s tariffs have led to trade wars with key economic partners, and several market participants have adopted drastic measures. In particular, gold has outperformed, which doesn’t seem to augur well for Chewy.\nAt the end of the day, pets are financial liabilities. Of course, having an animal in the house offers a range of holistic benefits, such as companionship and reduced stress levels. Nevertheless, financially, the four-legged family member is consumptive, not accretive. With economic headwinds such as inflation taking its toll on consumer spending, it’s only natural to have skepticism over CHWY stock.\nMultiple sources have reported that Americans are continuing to splurge on their pets despite inflation pressures since the COVID-19 pandemic. Part of this dynamic is generational. During the Great Recession, animal abandonment soared. Many kids who experienced this devastating trauma are now young adults—and they’re determined not to make the same mistakes their parents made.\n\n\n\n\n\nFurther, the performance of CHWY stock benefits from this underlying catalyst. Over the past 52 weeks, Chewy shares have more than doubled, leading to a market capitalization of almost $14 billion. That doesn’t sound like an accidental spike in value but rather a justified premium.\nOn the financial front, analysts expect steady growth over the next two years despite the aforementioned economic pressures. For FY2025, Wall Street anticipates consensus revenue of $11.81 billion, up almost 6% from the prior year’s tally of $11.15 billion. For FY2026, the top line could expand to $12.4 billion, up nearly 5% from projected 2025 sales.\nTo be fair, CHWY stock is trading at 1.28x its trailing 12-month (TTM) sales, which is elevated. However, when stacked against this year’s consensus revenue projection—which is arguably a very realistic target given the underlying fundamentals—this multiple drops to 1.17x. No, it’s not cheap, but CHWY stock has a solid chance of growing into its valuation, especially given current circumstances.\nSmart Money Prepares CHWY Options Strategies\nAnother factor to consider for those intrigued by CHWY stock is its unusual options activity. Since derivatives represent the arena of sophisticated market participants, their activity could signal future price trends. What’s especially intriguing was the sale (or writing) of $42.50 put options expiring July 18 this year. These transactions began in late January and have continued into this month.\nPut options give holders the right but not the obligation to sell the underlying security at the listed strike price. On the other side of this transaction, put sellers (writers) underwrite the risk that the security will not fall materially below the strike price. If it does, sellers risk assignment; that is, the put holders will exercise their options, forcing put writers to buy the stock.\nSo, why do put writers underwrite this risk? First, they collect the premium that put buyers pay to purchase the option. Second, the strike price minus the premium received effectively represents the share price at which put sellers are comfortable buying.\n\n\n\nRight now, those puts are trading at around $11. Subtracting this premium from the strike price gives us a breakeven threshold of $31.50. Realistically, the premiums received were higher. So, the put writers’ comfortable buy-in price is probably around $29. In other words, the recent lows we saw may have been the bottom. If so, retail investors could choose to get aggressive here if they so desire.\nOne risky but possibly lucrative idea to consider is the 33/35.50 bull call spread expiring this Friday. This trade involves buying the $33 call and simultaneously selling the $35.50 call. The trader uses the proceeds from the short call to partially offset the debit paid for the long call. As of this writing, the maximum payout, should CHWY stock hit the $35.50 strike price at expiration, is 82.48%.\nThe reason for the aggressive posture is that Chewy will disclose its earnings results on March 26. A positive outcome could quickly spike shares higher.\nA simpler and more conservative trade is to buy the $35 call expiring July 18 outright. The bulls will almost surely attempt to drive CHWY stock toward the psychologically important $40. If the security starts marching to that milestone, the $35 call will become a hot ticket.\nIs CHWY Stock a Buy or Sell?\nTurning to Wall Street, CHWY stock has a Strong Buy consensus rating based on 15 Buys, one Hold, and zero Sell ratings over the past three months. The average CHWY price target is $41.06 per share, implying an 18.5% upside potential.\n\n\n\nSee more CHWY analyst ratings\n\n\nOptions Traders Prepared for Opportunity in CHWY Stock\nWhile economic woes cloud the broader retail sector, Chewy commands the advantage of a compelling business. Americans love their pets—and they’ll do anything to protect them. This love has proven itself despite post-pandemic hardships, instilling confidence in CHWY stock. Another factor that possibly augurs well for CHWY is smart money inflows. Major players are betting that shares won’t materially decline from here. If you believe in this floor, you have some options at your disposal.\nDisclosure.Questions or Comments about the article? Write to editor@tipranks.com","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1,"code":"91000000","status":"200"}}}