OYST has approached an area of significant support, from which it has strongly bounced 3 times in the past months for 40-100% increase. I’m looking for a confirmation of a bounce, or if it falls through the $9.85-$10 support level, the continuation of a long term down trend.
Earnings is coming up at the end of the month, estimated to be held on February 17. The first bounce off the $10-$11 area was before the previous earnings with a 50% increase leading into earnings, following a drop. Many in the community played it at the time for a fundamental catalyst, you can read more about it here:
If you are looking to play a potential bounce, be careful with which strike you choose, as the volume on options is low. ITM and ATM are your best choices. Previous bounces took weeks to a month to peak, going for a further out expiry is likely worth it.
As mentioned this stock has extremely low volume and moves like molasses. April or July would be recommended for options (furthest available currently), otherwise shares would be safest.
This earnings they might report their initial sales with that new dry eyes treatment that got FDA approval late last year. However, again as slow as this stock moves don’t expect anything to happen on ER day.
I just looked at the chains on Friday and OI/volume is abysmal, most strikes have nothing or only single-digit action. Be very cautious about what you are paying for an option as it is unlikely to move much, and you will probably have to sell at the bid. Again, shares would be a much safer play.
Still haven’t taken a position. I missed the AM dip but would like to get shares at/below $10.50 too…
I believe my original post still stands, it is still holding support, but also has room to go down before it decides on a direction. I wouldn’t be surprised if it hovered between 10.5-11.5 for a while.
I got out of my call position last week over a couple of days for a nice profit, but still holding shares. The $10 support has been holding well so far, but If it stays in this price range until earnings day, I may sell my shares as the risk of a less than ideal earnings pushing this below support is not worth it for me.
I’ll look into earnings expectations this week to have a better idea, and will update this post accordingly.