Call Traders Could Use This Retail Stock to Profit

The security could attract bull notes

Jun 7, 2024 at 5:06 PM
facebook X logo linkedin

Subscribers to Schaeffer's Weekend Trader options recommendation service received this BJ 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.

BJ's Wholesale Club Holdings Inc (NYSE:BJ) stock broke out above $80 after the retailer’s earnings report, a level that is also the site of 2022 highs. Follow-through buying then pushed the shares above $85, or five times their initial public offering (IPO) price of $17 back in 2017. Now looks like an excellent time to bet on a move higher, given its mild pullback and relative strength amid this week’s broad-market selloff.

Despite being fresh off all-time highs, analysts are bearish toward the stock, with 10 of 19 in coverage maintaining a “hold” or worse rating. This leaves ample room for bull notes, which would generate additional tailwinds. The security could also benefit from a short squeeze, with short interest up 370% since the end of 2022 and accounting for a whopping 44.5% of its available float.
It’s also worth noting that implied volatility (IV) of 23% for the shares is below 63-day historical volatility (HV) of 34%. Our recommended August call has a leverage ratio of 8.9 and will double on a 11.1% pop in the underlying equity.


Unlock Weekend Profits with Chris Prybal's Favorite Strategy Up +487.5% in 2024

With the markets going left, right, and sideways, you need to have a plan now more than ever. 

Expert Trader Chris Prybal is no stranger to volatility, and has mastered finding big stock rallies while other traders aren't looking over the weekend. Rallies that produced gains like +207% on RTX calls, +236% on MARA calls, and +238% on NET calls.

A few simple moves on Sunday at 7pm could be the “Secret Sauce” your portfolio needs to not just stay afloat, but make unprecedented gains in this turbulent market.

Don’t sit on the sidelines, beat the market with Chris Prybal's strategy. Join him now!