Wayfair (W) – Home Furnishing Strength – Nov 2nd, 2020

Bullish – W – $248.03

Catch OptionsPlay’s Chief Strategist, Tony Zhang on CNBC, Options Action every Friday at 5:30 PM EST!

Market Outlook:
After a volatile week driven by an uptick of COVID cases globally and huge tech earnings, we enter the election week just above major support levels. $323 and SPY and $260 on QQQ have held so far last week and we need to see markets hold these levels to maintain a bullish view on equities. 

Watch Tony’s W Trade Video on CNBC

W Trade Idea:
On CNBC’s OptionsAction show on Friday, Tony Zhang reviewed Wayfair’s earnings event next week. With home improvement credit card data remaining extremely resilient and consistent, we expect a strong earnings beat. Investors and analyst have turned bearish on furniture stocks in the past month and we expect a surprise to the upside for e-commerce focused companies such as Wayfair. Expecting a strong reaction to earnings and guidance, Tony is selling a Dec $240/$210 Put Vertical @ $13.50 Credit. 

We’ve structured this trade in OptionsPlay so you can analyze and view this trade along with the supporting technical chart at your convenience.