Many Reasons to Target Chinese Video Stock

BILI is also ripe for a short squeeze

Oct 21, 2020 at 3:42 PM
facebook X logo linkedin


Chinese video game concern Bilibili Inc (NASDAQ:BILI) just recently pulled back to its 100-day moving average, an area that has acted as consistent support since late 2019. Longer term, the stock sports an impressive 135% year-to-date lead, but could add to that tally as 2020 mercifully winds down.

BILI 100

 

A short squeeze could create additional tailwinds for the security. Short interest is up 35% in the past five months, making up 8.6% of the stock's available float. That bearish sentiment is reiterated in the options pits, where puts are popular. This is per the BILI’s Schaeffer's put/call open interest ratio (SOIR) of 1.04, which stands higher 73% of readings from the past year. In other words, short-term option traders have rarely been more put-biased. Digging deeper, data shows that a large cluster of 45-strike calls expired this week too, removing a potential options-related resistance.

The good news for options traders is that BILI is pricing in relatively low volatility expectations at the moment. This is per the stock's Schaeffer's Volatility Index (SVI) of 61%, which sits higher than just 26% of all other annual readings.

Plus, BILI’s Schaeffer's Volatility Scorecard (SVS) ranks at a high 83 out of 100, meaning the security has tended to exceed these expectations during the past year, a boon for premium buyers.  

Subscribers to Schaeffer's Weekend Trader options recommendation service received this BILI commentary on Sunday night, along with a detailed options trade recommendation -- including complete entry and exit parameters. Learn more about why Weekend Trader is one of our most popular options trading services.

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI