How Bears Doubled Their Money With Wayfair Stock

It took just one week for put traders to win with W recommendation

Digital Content Manager
Oct 24, 2023 at 3:10 PM
facebook X logo linkedin


Subscribers to our Schaeffer's Players service saw a 103% profit with our Wayfair Inc (NYSE:W) October 47 put in just one week. Below, we will break down our reasoning for entering this position, and see how it delivered big gains to options bears.

At the time of our recommendation on Oct. 13, Wayfair stock had breached its 200-day moving average, as well as its 80- and 52-week trendlines. The shares had also broken a 38.2% Fibonacci retracement of their 2023 highs and lows, in addition to a trendline connecting a series of lower lows dating back to Aug. 2, which pointed to its selloff accelerating.

There was plenty of room for optimism to unwind as well. Of the 28 analysts in question, 15 considered W a "buy" or better. Plus, the security's Schaeffer's put/call open interest ratio (SOIR) of 1.39 was in the low 17th percentile of annual readings, indicating short-term options traders leaned bullish. 

It's also worth noting that Wayfair stock was also trading below all major open interest (OI) strikes, indicating there was very little in terms of options-related support below it.

Though the shares were last seen up 2.3% to trade at $43.36 at last check, they are just now beginning to bounce back. The security is eyeing only its third gain since our recommendation, and logged only two wins since our subscribers closed their positions on Oct. 20, fully maximizing their profits. Quarter-to-date, W is down 28.7%.

W 200 Day

 

 

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