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Hawk’s Nest

Pet Food Leader Sees Opening Put Sale

by | Jan 17, 2023

Chewy (CHWY) opening seller of 1070 March 3rd (W) $43 puts $3.05 as the highly shorted name is coiling in a tight flag pattern just under monthly value area high near 45.50. CHWY has a 27% short interest which can see a big squeeze higher if price can clear 45-47. Shares have been forming a long basing pattern since the Fall and coiled on the weekly chart near the 40 level with monthly value area resistance at 45.30 but a close above that can see a swift move to 50 and then 60 is an untested VPOC target going forward. Big picture the weekly chart has formed a large, inverted bottom pattern that can trigger higher on a breakout through yearly value area highs of 47.50 and likely move towards 60-70.