– DM 6:55 PM CST
I have several existing positions that have Earnings AMC:
Here is an EPS graph on $BWLD via Estimize:
Note: You can view the specific trade info on the appropriate Positions tab.
Sometimes I see a chart that clearly shows the potential to make a move in either direction. I noticed this potential in $BWLD today with the 2 Gap Fill areas:
So, how about a trade idea? This is one approach to consider:
Some scenarios to consider:
1) Price is $185 at September expiration. The long Sep $140 Puts go poof. Take the stock at $175. Now plan for adjusting the short December $175 Calls any time before the December expiration. If the short December $140 Puts are real cheap, BtC
2) Price is $135 at September expiration. The long Sep $175 Calls go poof. Take the stock short at $140. Now plan for adjusting the short December $140 Puts any time before the December expiration. If the short December $175 Calls are real cheap, BtC. Might want to consider buying Calls to protect the short stock too, use some of the credit
I will be considering the following trade for Earnings 10/27/2014 AMC in $BWLD:
The trade idea:
If price moves near the $150 or $120 levels you would need to consider hedging with stock in after hours.
During the course of the day yesterday, I had a short list of stocks that I was monitoring very closely for a good long entry. One of the stocks was BWLD (Buffalo Wild Wings). I typically create a variety of charts when I am stalking, and here are a few updated Area charts that I use:
Here are just a few examples of what TA folks would potentially draw on a chart. As I have noted before, I feel this effort is important so that I understand as many perspectives as possible.
Remember, it’s war out there so you need to know what your enemies are thinking. 😉