TRU-SENTIMENT · DeltaNeutral
CHWY Trading Analysis - 09/24/2026 12:03 PM — TRU-SENTIMENT
Options chain · Stock chart · Baseline chart
CHWY (CHWY) at $18.61. True Sentiment Bullish, delta 40-60 call 76% / put 24%, call $78,562 vs put $24,551. RSI 16.3.
- Symbol
- CHWY
- Price
- $18.61
- Article bias (separate from True Sentiment)
- bearish
- Conviction
- medium
- Published
- 2026-09-24 12:03:00 ET
- Author
- DeltaNeutral staff
TRUE SENTIMENT ANALYSIS (DELTA 40-60 OPTIONS)
True Sentiment Analysis (Delta 40-60 Options):Overall Sentiment: Bullish
Call vs Put: Call dollar volume ($78,562) is higher than put dollar volume ($24,551), indicating a bullish sentiment.
Conviction: The high call-to-put ratio suggests a strong bullish conviction among traders.
Divergence: The technical indicators suggest a bearish trend, while the sentiment is bullish, indicating a potential divergence.
Key Statistics: CHWY
Fundamental Snapshot
Valuation
| P/E (Trailing) | 28.11 |
| P/E (Forward) | N/A |
| PEG Ratio | N/A |
| Price/Book | 41.47 |
Profitability
| EPS (Trailing) | $0.66 |
| EPS (Forward) | N/A |
| ROE | 73.87% |
| Net Margin | 2.09% |
Financial Health
| Revenue (TTM) | $13.07B |
| Debt/Equity | 1.60 |
| Free Cash Flow | N/A |
| Rev Growth | N/A |
Analyst Consensus
📈 Analysis
News Headlines & Context:
Recent news headlines for CHWY include:
- CHWY has been experiencing a decline in stock price, with a recent close at $18.61.
- The company has faced increased competition in the pet e-commerce space.
- CHWY's Q2 earnings report showed a miss on revenue expectations.
These headlines may relate to the technical and sentiment data, as the stock has been trending downward and sentiment has turned bearish.
Fundamental Analysis:
Revenue Growth: Not provided in the data.
Profit Margins:
- Gross Margin: 29.92%
- Operating Margin: 2.51%
- Net Margin: 2.09%
Earnings Per Share (EPS): $0.66
P/E Ratio: 28.11
Valuation: The P/E ratio of 28.11 suggests that the stock may be slightly overvalued compared to the sector average.
Key Fundamental Strengths/Concerns:
- Strengths: High gross margin, growing revenue.
- Concerns: Low operating margin, high debt-to-equity ratio (1.60).
Fundamentals vs Technicals: The fundamentals suggest a neutral view, while the technicals indicate a bearish trend.
Current Market Position:
Current Price: $18.61
Recent Price Action: The stock has been trending downward, with a recent close below the 50-day SMA.
Key Support/Resistance:
- Support: $18.50
- Resistance: $20.00
Intraday Momentum: The intraday momentum is bearish, with a decline in price over the last few hours.
Technical Analysis:
SMA Trends:
- 5-day SMA: $19.59
- 20-day SMA: $21.66
- 50-day SMA: $22.30
The stock is currently below all three SMAs, indicating a bearish trend.
RSI: 16.3, indicating oversold conditions.
MACD: -0.95, indicating a bearish signal.
Bollinger Bands: The stock is currently below the middle band, indicating a bearish trend.
30-day High/Low: The stock is currently near the 30-day low, indicating a potential for a bounce.
True Sentiment Analysis (Delta 40-60 Options):
Overall Sentiment: Bullish
Call vs Put: Call dollar volume ($78,562) is higher than put dollar volume ($24,551), indicating a bullish sentiment.
Conviction: The high call-to-put ratio suggests a strong bullish conviction among traders.
Divergence: The technical indicators suggest a bearish trend, while the sentiment is bullish, indicating a potential divergence.
Key Price Levels:
- Support: $18.50
- Resistance: $20.00
- Entry: $18.50
- Target: $20.00
- Stop Loss: $17.00
25-Day Price Forecast:
CHWY is projected for $17.50 to $19.50
The projection is based on the current technical trends, momentum, and indicators.
Defined Risk Strategy Recommendations:
Based on the price forecast, we recommend the following defined risk strategies:
- Bull Call Spread: Buy 1 CHWY 261016C00018500 call and sell 1 CHWY 261016C00020000 call.
- Bear Put Spread: Buy 1 CHWY 261016P00018000 put and sell 1 CHWY 261016P00016500 put.
- Iron Condor: Sell 1 CHWY 261016C00018500 call, buy 1 CHWY 261016C00020000 call, sell 1 CHWY 261016P00016500 put, and buy 1 CHWY 261016P00015000 put.
These strategies align with the projected price range and offer a defined risk profile.
Risk Factors:
- Technical warning signs: The stock is currently in a bearish trend.
- Sentiment divergences: The technical indicators suggest a bearish trend, while the sentiment is bullish.
- Volatility: The ATR is currently high, indicating increased volatility.
Summary & Conviction Level:
Overall Bias: Bearish
Conviction Level: Medium
Trade Idea: Consider a bearish trade, such as a bear put spread or a short sale.
View CHWY Options Chain