Earnings trade in JC Penneys

I have a new trade on today for $JCP Earnings:


Here is the breakdown:

I am long stock at $8.75
I am long the November 22 weekly $8.50 Puts
I am short the November 29 weekly $8.50 Straddle
This was done for a $.87 credit

On any weakness, I would expect it to be short-term and thus I would sell the long Puts on Friday for whatever value (so much is priced in now). Any bounce, well, I am capped at $9.37 until next Friday.

2 thoughts on “Earnings trade in JC Penneys

  1. Initial reaction was positive, price popped up to the $9.5 area. Has held the move so far today (as of 10 AM CST).

Leave a Reply

Your email address will not be published.