November 18, 2019  Terry’s Tips Trade Alert  – Earnings Eagle  Portfolio   

  

LOW announces before the close on Wednesday, November 20. The options are pricing in a 7.1% move while the recent post-announcement move has been 7.8%.  This doesn’t give us much of a margin but the spreads are so cheap that a flat price would be a huge windfall. 

 

BTO 10 LOW 27Dec20 114 puts (LOW191227P114)

STO 10 LOW 22Nov19 114 puts (LOW191122P114) for a debit of $.75  (buying a calendar)

 

BTO 10 LOW 27Dec20 125 calls (LOW191227C125)

STO 10 LOW 22Nov19 125 calls (LOW191122C125) for a debit of $.40  (buying a calendar)

 

BTO 10 LOW 27Dec20 112 puts (LOW191227P112)

STO 10 LOW 22Nov19 112 puts (LOW191122P112) for a debit of $.75  (buying a calendar)

 

BTO 10 LOW 27Dec20 120 calls (LOW191227C120)

STO 10 LOW 22Nov19 120 calls (LOW191122C120) for a debit of $.72  (buying a calendar)

 

BTO 10 LOW 27Dec20 110 puts (LOW191227P110)

STO 10 LOW 22Nov19 110 puts (LOW191122P110) for a debit of $.80  (buying a calendar)

 

BTO 10 LOW 27Dec20 118 calls (LOW191227C118)

STO 10 LOW 22Nov19 118 calls (LOW191122C118) for a debit of $.85  (buying a calendar)

 

BTO 10 LOW 27Dec20 106 puts (LOW191227P106)

STO 10 LOW 22Nov19 106 puts (LOW191122P106) for a debit of $.67  (buying a calendar)

 

BTO 10 LOW 27Dec20 116 calls (LOW191227C116)

STO 10 LOW 22Nov19 116 calls (LOW191122C116) for a debit of $.90  (buying a calendar)

Be prepared to change this (these) price limit(s) by $.05 or more in order to get an execution

 

Happy trading.

Terry