$ORLY, O’Reilly Automotive, Inc.

$ORLY, O’Reilly Automotive, Inc.

$ORLY Daily Chart

Trade Date: 07/05/17- 07/06/17

$ORLY reported disappointing earnings results this morning. Despite sales being up 1.7% during the second quarter, they were well below its previous guidance numbers of 3 to 5%. CEO Greg Henslee admitted to a challenging sales quarter. After the stock’s relentless surge for the past few years, it appears the party’s finally over.


Trade Style: Short Term Swing Trade

Position Bias: Bearish

Technical Criteria

  • Price Change: - $ 20.81 and - 9.36 %
  • Premarket Volume: 42,430 shares
  • Daily Average Volume: 2 million shares
  • Average True Range: $ 5.11

Entry Price & Time

            You know shit is about to hit the fan when a stock tanks so bad, it takes its sister stocks (Advanced Auto Parts $AAP and AutoZone $AZO) down with it. When $ORLY gapped down 9% premarket, it obliterated all recent support levels on the daily chart. Clearly, I wasn’t the only one who thought so as $ORLY had its biggest volume day of the year!

            Intraday, the stock showed some slight selling immediately followed by a series of sideways consolidating candles. With the stock never having retraced back to its opening price, the selling pressure was there. Each uptick brought the price back down, and once it broke the low of the range I entered short for a stop above the highs.

            Entry Date: 07/05/17

            Entry Price: $ 195.95

            Entry Time: 9:35 AM

            Stop Price: $ 200.95

            Risk: $ 5.00

$ORLY Entry on 1 min. chart

Exit Price & Time

            Exit Date: 07/06/17

            Exit Price: $ 176.50

            Exit Time: 3:30 PM

$ORLY Exit on 5 min. chart

Trade Execution will be published once released by broker.


Results and Evaluation

            The biggest movers are the stocks that release real news, especially its earnings report. By focusing on the best stocks, I’ll always be there to catch these huge moves. Clean entry, clear stop, and exact exit – this turned out to be the biggest monetary trade of the year! I was able to capture a $19.50 move!

Keep this stock on your radar folks. I have a feeling the pain isn’t over.

Risk: $ 5.00

Reward: + $ 19.45

R Multiple: + 3.89 R