Plug Power, Inc.
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PLUG Mean Reversion

520
Extremely oversold. While its fundamentals might still point that it is overvalued, its technicals are looking strong for either a strong move back up as shorts take profits and people buy back in now that it is at a key support level and has shown resistance towards a further down move.

High Probability, but risky due to its high volatility.

Trade Ideas:
  • Shares: Long between 33-42 for 50, 55+.
  • Short Put: 25 Strike expiring 4/16 for $0.72 credit. 83% POP and very cheap at $250 BPE for a solid 28% ROC.
トレード終了: 利益確定目標に到達
Close Short Put. The 25-strike SP is currently trading for $0.22 resulting in a $0.50 or 69% profit per contract.

Take profits on shares. PLUG is also trading at $46.5, which is at least 10% above the entry price of $42.
ノート
While PLUG has tanked 16%, it is still above the $33.26 support, and is back at our accumulation target for shares. This move was related to the correction in fundamentals so that needs to be considered before entry or reentry now.

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