How Traders Doubled Their Money With Camping World Puts

The shares quickly pulled back to the site of their June/Dec 2022 lows

Deputy Editor
Sep 21, 2023 at 2:32 PM
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Subscribers to our Schaeffer's Weekend Trader service just scored a 100% profit with our recommended Camping World Holdings Inc (NYSE:CWH) October 20, 2023 26-strike put in less than a month. Below, we'll explore our motives for our position on CWH, and take a quick look at how the trade played out. 

At the time of our recommendation on Sunday, August 27, the RV retailer was continuing to fall after its post-earnings bear gap at the start of the month, breaking below its 200-day moving average that week. At the time, we noted that the stock could potentially revisit its June/December 2022 lows at the $20-$21 area. 

Though the shares were down 20.5% year-over-year, analysts still leaned bullish, with eight "strong buy" recommendations compared to two "hold" ratings. CWH had also been falling despite short covering since June, putting short interest at a two-year low. At the time, options looked like a prudent way to play CWH, too, as its implied volatility (IV) was lower than its 40-day historical volatility (HV). 

Shortly after our recommendation, the shares briefly consolidated below the $26 level before pulling back to the $20 level, just as predicted. This level appears to now be providing a floor of support for the shares as well. On Friday, Sept. 15, we exited the position, allowing subscribers to double their money in under a month.

CWH Sep21

 

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