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Sep 2021: BNTX $330 – $335 Bull Call Spread

Stock

BNTX

Trade Structure

$330-$335 Call Spread

Trade Date

9/1/2021

Price Paid

$250

Expiration Days

10/01/2021

THIS IS A DELAYED TRADE FOR EDUCATIONAL PURPOSES ONLY.

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Trade Rationale

BNTX had a massive pre-earnings run up and as is common with these situations the stock usually gives way to profit taking even if it is an earnings beat. The stock has been stabilizing around $330 support ever since. RSI is flattening out and DI- is also flat which indicates that the downward momentum has lost its legs. The stock hasn’t really turned around in our favor yet so it is a waiting game at this point.

Trade Selection Criteria

Overall market movement

This trade is a post earnings trade. With these kind of trades I pay attention to the individual stock movement more than anything else. The overall market movement does not factor much into it. 

N/A

No Earnings or Significant News

This is a post-earnings trade. The earnings were announced a few days ago.

Bollinger Bands outside Keltner Channels

Bollinger bands are clearly outside Keltner Channels.

RSI Analysis

RSI is flattening out after the recent sell-off

ADX Analysis

DI- has flattened out indicating loss of downward momentum

Trade Analysis

Interesting trade. BNTX went sideways after putting on this trade, whipsawing between slight profits and losses. As expiration was approaching, the trade was looking very good. But then MERCK came out with their Oral Covid medicine news and that literally pulled the rug out from all the vaccine stocks. BNTX also fell a victim to the news and ended up being a full loser.

Trade Outcome

LOSER

Profit/Loss

$-250

Beginning Account Balance

$17,100

Ending Account Balance

$16,800

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