Buy Big Lots Options On Upcoming Earnings
Feb 26, 2010 Earnings, Options, Trading Idea
The following is the latest trade from our Options Capitalist service.
Closeout retailer Big Lots (BIG) reports its latest earnings news on Monday. There is a very good likelihood the company beats estimates, which should send the shares higher.
Buy the Big Lots March 2010 32.50 calls. They are now trading at $1.90 by $2.05. Enter to $2.40. There is a fifteen cents spread between bid and ask, which is larger than what we prefer, but with a beat, we should see a $2-$3 pop in the stock.
The Options Capitalist is a subscriptions-based options trading recommendation service. More information about the service can be found here.
Hewlett Packard Earnings Options Play
Feb 17, 2010 Earnings, Options, Stocks, Trading Idea
Hewlett Packard (HPQ) reports Q1 2010 after the bell today. Analysts are looking for the company to report earnings of $1.06 per share for the quarter. There is a good likelihood the company will beat earnings and we are buying calls to profit if the company does beat estimates and the stock moves higher. We are also purchasing some puts to hedge against a downside move in the stock, in the event the news is disappointing.
The Trade:
Buy the Hewlett Packard March 50 calls. The current ask is $1.62
For every three calls you purchase, buy 1 Hewlett Packard March 50 puts, which are currently asking $1.52.
We will post a follow up on this trade tomorrow Thursday February 18, 2010.
Navivest is a trading advisory services firm offering subscription-based trade recommendation services. For more information on our services, visit our website at http://www.navivest.com
Tags: Earnings, hewlett packard, Options
