Blue Apron

Blue Apron Holdings, Inc. operates an e-commerce marketplace that delivers original recipes and fresh ingredients for making home cooking accessible. It provides original recipes with the pre-portioned ingredients to complement tastes and lifestyles of college graduates, young couples, families, singles, and empty nesters. The company also offers Blue Apron Wine, a direct-to-consumer wine delivery service that sells wines, which can be paired with its meals; and sells beef, poultry, and lamb products under the BN Ranch brand name. Its meal products are accompanied by printed and digital content, including how-to instructions, and the stories of its suppliers and specialty ingredients. The company offers its services through order selections on Website or mobile application in the United States. Blue Apron Holdings, Inc. was incorporated in 2016 and is headquartered in New York, New York.
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My Path Forward

This company was recently brought to my attention so I went to the charts to see exactly what's going on with these shares. An I was amazed. These shares lost over 80% of their value after their initial public offering and bottomed just below $2. That in itself is simply devastating for those initial owners. But it appears that it did bottom there and it has now almost doubled off that bottom. It also popped above its 200 dma two days ago on strong volume and then retested that support on Friday on lesser volume. That's exactly the kind of activity I like to see.  

Looking more closely at the charts and it appears that the only resistance these shares may run into on the way up surfaces near $5. That's a 50% move higher from its current price. If it doesn't hold, the next level of support would be the 50 dma near $3. So for me, the risk reward ratio is a potential loss of $0.35 and a potential gain of $1.65. That's almost a 4.7/1 ratio which make the benefit worth the risk for me. 

This is an easy call for me. I intend to buy these shares and sell short term covered calls at $5 on at least part of the shares in order to reduce my costs and increase my income. I may also sell $3 puts because I believe these shares will see significant support at $3. This looks to be a great platform for both equity owners, swing traders and options sellers.