May 17th- Sonos June 18
SONO June 18th 40C $.54
Sonos offers high-end, wireless speakers, home theatre speakers and soon to be automobile speakers (partnership with Audi's E-Tron). It was said to be a work from home stock, however, it has proved there is more to the story. They reported a blowout earnings report last week, beating analyst expectations of a $.22 loss by surprising with a profit, $.12 earnings per share. In addition, sales rocketed 90%, reporting $333 million, beating the estimates of $248.5. Lastly, they raised their guidance to ~1.65B from 1.57B.
Shares traded as high as 20% higher on earnings day, but soon came back down to support level in high $33.90 area, just below $34.87 (100 day moving average).
Technically speaking, the gap between 100 day average (34.87) and 50 day average (39.67) is substantial and will likely fill that gap this week for a big move. The RSI is right at rock bottom and even dipping into the high 20's, marking oversold.
Be cognizant, we are due for a bond yield move, which could hurt this trade, so be aware and take profit when you can.