Bearish outlook, bearish, sell off, bearish market, downtrend


BILL looks like a perfect pick for put traders

Subscribers to Schaeffer’s Weekend Trader options recommendation service received this BILL 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.

BILL Holdings Inc (NYSE:BILL) stock gapped lower last week, even after the company reported a fiscal second-quarter earnings and revenue beat and lifted its 2024 guidance. The shares drifted sideways into the 80-day moving average ahead of the report, and have struggled to rally from June through November, despite a massive bout of short covering over that period.

 

Short interest has been steadily rising since early November from more than three-year lows. A round of downgrades could be in store, too, since 23 of the analysts in coverage call the stock a “buy” or better, while only eight say “hold.”

It’s also worth noting that the recommended expiry is in line with historical volatility. Our weekly put has a leverage ratio of 4.7, and will double in a 17.5% move lower in the underlying security.



Image and article originally from www.schaeffersresearch.com. Read the original article here.