TRU-SENTIMENT · DeltaNeutral
CHWY Trading Analysis - 09/25/2026 10:26 AM — TRU-SENTIMENT
Options chain · Stock chart · Baseline chart
CHWY (Chewy, Inc.) at $18.49. True Sentiment Bearish, delta 40-60 call 28% / put 72%, call $6,815 vs put $17,734. RSI 18.1.
- Symbol
- CHWY
- Price
- $18.49
- Article bias (separate from True Sentiment)
- bearish
- Conviction
- medium
- Published
- 2026-09-25 10:26:00 ET
- Author
- DeltaNeutral staff
TRUE SENTIMENT ANALYSIS (DELTA 40-60 OPTIONS)
True Sentiment Analysis (Delta 40-60 Options):Overall Options Flow Sentiment: Bearish, with a put-call ratio of 72.2%.
Call vs Put Dollar Volume: Call dollar volume is $6,815, and put dollar volume is $17,734, indicating bearish conviction.
Pure Directional Positioning: The options flow suggests that traders are positioning for a decline in the stock price.
Key Statistics: CHWY
Fundamental Snapshot
Valuation
| P/E (Trailing) | 27.76 |
| P/E (Forward) | N/A |
| PEG Ratio | N/A |
| Price/Book | 40.95 |
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 $18.53.
- The company has been facing increased competition in the pet e-commerce space.
- CHWY's Q2 earnings report is expected to be released soon, which could be a significant catalyst for the stock.
These headlines relate to the technical and sentiment data as they may impact investor perception and trading activity. The decline in stock price and increased competition could be contributing to the bearish sentiment in options flow.
Fundamental Analysis:
Revenue Growth: Not provided, but total revenue is $13,068,700,000.
Profit Margins: Gross margin is 29.92%, operating margin is 2.51%, and net margin is 2.09%.
Earnings Per Share (EPS): Trailing EPS is $0.66, and the trailing P/E ratio is 27.76.
Valuation: The forward P/E ratio is not provided, but the current P/E ratio is 27.76. The PEG ratio is also not provided.
Key Strengths/Concerns:
- Strengths: Gross margin of 29.92% and operating cash flow of $717,200,000.
- Concerns: High debt-to-equity ratio of 1.60, low EPS of $0.66, and negative ROE of 0.74%.
Analyst Consensus: Not provided, but the target mean price is not available.
The fundamentals suggest that CHWY has a strong gross margin but concerns around profitability, high debt, and low EPS.
Current Market Position:
Current Price: $18.53.
Recent Price Action: The stock has been declining, with a recent close at $18.53.
Key Support and Resistance Levels:
- Support: $17.50 (50-day SMA).
- Resistance: $22.23 (200-day SMA).
Intraday Momentum and Trends: The intraday momentum is bearish, with a decline in price over the last 5 minutes.
Technical Analysis:
SMA Trends:
- 5-day SMA: $19.11.
- 20-day SMA: $21.43.
- 50-day SMA: $22.23.
RSI: 14-period RSI is 18.06, indicating oversold conditions.
MACD: MACD is -1.04, and the signal line is -0.84, indicating a bearish crossover.
Bollinger Bands: The stock price is near the lower band, indicating potential oversold conditions.
30-day High/Low: The stock price is near the 30-day low, indicating potential support.
True Sentiment Analysis (Delta 40-60 Options):
Overall Options Flow Sentiment: Bearish, with a put-call ratio of 72.2%.
Call vs Put Dollar Volume: Call dollar volume is $6,815, and put dollar volume is $17,734, indicating bearish conviction.
Pure Directional Positioning: The options flow suggests that traders are positioning for a decline in the stock price.
Key Price Levels:
Support: $17.50, $18.14.
Resistance: $19.11, $21.43.
Entry/Target/Stop: Not provided.
25-Day Price Forecast:
CHWY is projected for $17.50 to $20.00 based on current technical trends, momentum, and indicators.
The projection is based on the current SMA trends, RSI momentum, MACD signals, and recent volatility (ATR).
The 50-day SMA and 200-day SMA are key resistance levels that may act as barriers or targets.
Defined Risk Strategy Recommendations:
Based on the price forecast of $17.50 to $20.00, we recommend the following defined risk strategies:
- Bull Call Spread: Buy 1 CHWY 261016C00018000 call and sell 1 CHWY 261016C00020000 call.
- Bear Put Spread: Buy 1 CHWY 261016P00018000 put and sell 1 CHWY 261016P00016000 put.
- Iron Condor: Sell 1 CHWY 261016C00019000 call, buy 1 CHWY 261016C00021000 call, sell 1 CHWY 261016P00016000 put, and buy 1 CHWY 261016P00014000 put.
These strategies align with the projected price range and provide a defined risk profile.
Risk Factors:
Technical Warning Signs: The stock price is near the 30-day low, and the RSI is oversold.
Sentiment Divergences: The options flow is bearish, but the technical indicators suggest potential oversold conditions.
Volatility and ATR: The ATR is 1.08, indicating moderate volatility.
What Could Invalidate the Thesis: A significant increase in stock price above $20.00 or a decrease in volatility.
Summary & Conviction Level:
Overall Bias: Bearish.
Conviction Level: Medium.
One-Line Trade Idea: CHWY may decline to $17.50 in the next 25 days.
View CHWY Options Chain