Looks like HLF met and slightly exceeded the official expectations on Revenue, Earnings, AND guidance....now we'll see how the mkt reacts tomorrow. After the numbers were released around 4:30 the stock traded down in AH....at one point down over $2 from the close. Apparently no one told the company they needed to beat the "whisper" number too!Originally Posted by user34615145
As you may recall, I sold puts on NFLX prior to their last earning release. Stock was trading at $114 or so and I sold the $100 puts for $2.35 or so...they missed on earnings and the stock tumbled and I ended up getting put those shares.
the next week I sold the Nov20 $100 covered calls against those shares for $5 and I also sold the Oct31 $93.50 Put for another $2.10 or so. Those $93.50 puts expired worthless on Friday so I pocket that premium and this morning I sold the Nov20 $100 puts for another $2. One or the other is going to execute, but not both. Either way I keep the premiums.
Also, in a similar vein, I'm playing the HLF earnings call - they announce Q3 numbers after the close today. As you probably know, they've been in a bit of a pissing match with Bill Ackman, who shorted them to oblivion 18 months ago.
Anyway, late last week they put out a bit, talking smack about Ackman's latest venture into Valeant Pharma....I figure (maybe I'm wrong - wouldn't be the first time) that they wouldn't be talking smack if their own numbers sucked, so I think they will do well - at least in the short term. So......
I sold Nov 6 (this Friday) $52.50 Puts for $2. If I get put the stock, I'll sell the covered calls like I did with NFLX.
At any rate, I still think my $52.50 short puts are a good way to play this. If the sp for HLF stabilizes around $55 tomorrow I should be able to buy them back for half of what I sold them for.....but I may just let them ride. Stay Tuned!
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guess we will save it for another day.
