Trade Kroger ahead of earning with a big gain or very low loss

-
 Kroger (KR) is releasing  in its Q2 earning on Friday September 9th 10 Am EDT . Most of analysts recommend buying the stock and expect beating the estimates and higher revenue .
Our favorite opinion to trade Kroger ahead of it's earning is buying the stock and protect your position against any reversal by buying PUT OPTION  as an insurance for owning the stocks .
Kroger ( KR) closing price today was 32.67 , Our trade will be:
---Buy 80 shares of KR  and buy 1 PUT OPTION  32.50 strike price expiration September 16/16  70$
Buy replacing that trade we get unlimited gain if the stock price goes higher and protect out trade buy buying PUT OPTION PREMIUM .
For example if the the stock price goes up from current price to 36 $ a share our profit will be  266-70(premium cost)=196$.
If the stock price goes down to 29 a share our loss will be 280(premium gain) - 288$(stock loss) =-8 $ only.
               Happy Trading

Comments

Post a Comment

Popular posts from this blog

What is covered call options strategy?

-
Image
Options are excellent tools for both position trading and risk management, but finding the right strategy is key to using these tools to your advantage. Beginners have several options when choosing a strategy, but first you should understand what options are and how they work. An option gives its holder the right, but not the obligation, to buy or sell the underlying asset at a specified price on or before its expiration date. There are two types of options: a call, which gives the holder the right to buy the option, and a put, which gives its holder the right to sell the option. A call is in-the-money when its strike price (the price at which a contract can be exercised) is less than the underlying price, at-the-money when the strike price equals the price of the underlying and out-of-the-money when the strike price is greater than the underlying. The reverse is true for puts. When you buy an option, your level of loss is limited to the option’s price, or premium. When you sell a na...
Read more

Buy This Retailer Trading Below Book Value

-
Image
By Christopher Speetzen   Seeking alpha Summary Hibbett Sports trades at a steep discount to book value. It operates in a difficult sporting goods market. Can it survive the Amazon economy? Hibbett Sports, Inc. (NASDAQ: HIBB ) is a small-cap sporting goods retailer operating retail stores in small- to mid-sized markets mainly in the Southeast, Southwest, Mid-Atlantic and the Midwest. Like practically all brick-and-mortar retailers over the last year, its stock has been pummeled, dropping from around $40 a year ago to ~$10 after earnings were reported Friday, August 18 th . The main question to ask is whether this drop is valid or not and whether the stock presents an opportunity at the present price. Its second-quarter results were pretty dismal: Loss of $0.15 per share. Comparable store sales decreased 11.7%. Net sales for the 13-week period ended July 29, 2017, decreased 9.2% to $188.0 million compared with $206.9 million for the 13-week period ended July 30, ...
Read more