4 Trade Ideas for BJ’s Wholesale Club: Bonus Idea

• Posted by Greg Harmon
• on April 7th, 2025

Here is your Bonus Idea with links to the full Top Ten:

BJ’s Wholesale Club, $BJ, comes into the week pulling back from a top. This would be a higher high without a higher high in momentum measured by the RSI, a negative momentum divergence. The RSI is in the bullish zone but falling with the MACD stalling and positive. There is support lower at 112.50 and 108 then 105 and 102 before 100 and 98. Resistance is at 119. Short interest is moderate at 4.9%. The stock does not pay a dividend.

The company is expected to report earnings next on May 21st. The April options chain has open interest spread from 115 to 95 and is biggest at 110 and 100 on the put side. On the call side it is biggest at 115 then 110. In the May chain open interest is biggest at 105 then 115 on the put side and at 115 and 120 on the call side. Finally, in the August chain, the first to cover the earnings report, open interest is biggest at 110 on the put side and light on the call side, spread from 105 to 120.

BJ’s Wholesale Club, Ticker: $BJ

Trade Idea 1: Sell the stock short on a move under 112 with a stop at 115.

Trade Idea 2: Sell the stock short on a move under 112 and add an April 115/120 Call Spread ($2.90) while selling the May 100 Put ($1.30).

Trade Idea 3: Sell an April/May 105 Put Calendar ($1.70, sell April, buy May).

Trade Idea 4: Buy the May 110/105/100 Put Butterfly (1.45).

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After reviewing over 1,000 charts, I have found some good setups for the week. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday which with the release of the first round of tariffs since 1930, saw equity markets reacted with their worst week (2 days) since March of 2020.

Elsewhere look for Gold to continue to hold over $3000/oz while Crude Oil collapses into a downtrend. The US Dollar Index continues to drift to the downside in consolidation while US Treasuries continue in consolidation. The Shanghai Composite looks to continue to consolidate the short term move higher while Emerging Markets may be entering a new downtrend.

The Volatility Index looks to remain very high making the path easier for equity markets to the downside. Their charts look weak on both timeframes. On the shorter timeframe the gaps the last 2 days may signal short term exhaustion. On the longer timeframe the SPY, the IWM and the QQQ are all in short term downtrends. Use this information as you prepare for the coming week and trad’em well.

If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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