Earnings Results - L Brands, Inc.
Earnings Results - L Brands, Inc. (LB) Hello Smart Option Sellers! For those of you who took a stab at the unofficial earnings play on LB yesterday - here's where we stand: Results came in mostly as expected, maybe a tad under analyst's projections. In the after-hours session yesterday, LB stock traded down to $45.62, and then this morning in the pre-market, it traded at $46 per share, giving us hope that we may be able to score a win. As good as that sounds, it doesn't help our cause because we can't trade the options in the pre-market or the after-hours sessions. We have to wait for regular trading to open at 9:30am EST. Well, once regular trading opened, LB stock moved right back near $49 per share, putting the trade in the worst-case scenario: the stock didn't move where it needed to. As of now, if anyone bought the $45 put and the $52.50 call options, they are both valued at $.05 or less, making them worthless for our purposes at the moment. We needed to see LB stock either move above $53 or below $44.50 to give us a shot of pulling out a profit. At this point, there's nothing for you to do. If the stock somehow makes a large move in either direction above or below the thresholds I just mentioned before the end of the day tomorrow (Friday 11/17), then we might have a chance to squeak out a gain. It's unfortunate that it couldn't sustain a large move in either direction. It's just sitting where it was yesterday. Grrr!!! This is the reason why we don't engage in these trades too often, and it's the reason why we only buy cheap options. As mentioned yesterday, there will be many more losers than winners when you are an option buyer, but at least the results aren't disastrous when you stick to buying the cheapies. Anyway, it's fun to take a stab every now and then, because if we win, we can win big. The hard part is finding the right opportunities. I'll keep looking from time to time, and if I see something worthwhile, I will surely mention it. For now, just hold the trades and if the stock makes a move tomorrow, I'll send another alert. Most likely they'll just expire worthless and disappear from your account. In other news, Wal-Mart (WMT) & Cisco (CSCO) had great earnings results yesterday, powering those stocks higher by $8 & $2.25 per share respectively. When was the last time WMT gained $8 per share in a single session? I don't think it ever has. Those moves are helping the overall market move higher today, which should continue to propel it upwards during the rest of the most bullish part of the calendar (Nov - Jan). That's all for now. Continue to hold all other trades as-is. Check the Current Portfolio below for updates & instructions. You can always reach us here
Regards, Lee Let's Grab That Cash!