Investors collected a 100% profit just over one week
Schaeffer's Weekend Trader subscribers scored a big win just in time for Thanksgiving. Bulls doubled their money with our Hims & Hers Health Inc (NYSE:HIMS) February 17 call recommendation in just over one week, so now is a good time to see how the trade played out.
At the time of our recommendation on Nov. 17, HIMS had just nabbed an all-time high after a push above $30, which was three times its 2019 initial public offering (IPO) price. A sharp pullback followed that peak, which may have been exaggerated by an unwinding of long positions associated with expiring November call open interest (OI), in addition to as delta-hedge selling related to heavy out-of-the-money OI in 11/22 through standard December expiration.
There was plenty of support lingering below to capture that downturn, which made it a good time to bet on a rebound for HIMS. The $19-$20 level was also home to the last put-heavy strikes, the 50-day moving average, and a trendline connecting higher lows since September.
What's more, shares were above the 61.8% Fibonacci retracement level connecting their September lows and recent highs, as well as $17.90, which was double their 2023 close. Short interest had nearly tripled since March, and shorts were likely to use that pullback to cover.
As anticipated, shares bounced off the $18 level and 50-day trendline the day after our recommendation, and have been in rally mode since. HIMS was last seen up 19.7% to trade at $30.32 at last glance, pacing for its fifth win in the last six sessions, enabling our traders to collect a 100% gain.
