$BLNK - an opportunity - TA & strategies

in #walllstreetbets3 years ago

Let's Talk about $BLNK
Crayons:
https://imgur.com/nm461Pt

TA:

  1. 8/21 Cross on verge of happening on the 65 minute chart.
  2. bullish divergence on the 65min RSI
  3. TTM Squeeze indicating a push up on the 65min

Speculative / Drivers

  1. Short Interest is 47.99% Of free float
  2. There are 7.68million shares covered in 13fs
  3. 20 million total shares available in float, with 13.29 million being borrowed/shorted

Thoughts On Entry:

Break of 38.99 gives confirmation of a long entry

Options and strategies in play:

4/16 $40 strikes -
5/21 $40 / $ 50 Vertical Spread - Cheap Cost of entry - good return potential

Theta In play:

Sell 4/16 $35 puts - potentially 9% return on capital.
Sell 4/16 $40 strikes - Potential 17% return on capital

Swing Equity:
Enter Shares, Sell monthlies - capture gains, and cover potential losses with premium gain

What i'm doing:

Synthetic long.
Sell 4/16 $40 Puts (assignment price $33change) Premium capture - $700ish - Take Premium and and purchase: 4/16 $38 calls.

Risk? the 4k per contract you put up as collateral, if you lose you come out of this with equity that you can wheel your losses out of.