Earnings for Next Wednesday
Add DLTR, GRMN, and MOS Plays
PLAY: Buy the DLTR March 50 Calls (O:DLTR 10C50.00) and the DLTR March 49 Puts (O:DLTR 10O49.00) for around $3.10, good for the day. Do not place a sniper sell or stop limit at this time.
PLAY: Buy the GRMN March 33 Calls (O:GRMN 10C33.00) and the GRMN March 32 Puts (O:GRMN 10O32.00) for around $3.45, good for the day. Do not place a sniper sell or stop limit at this time.
PLAY: Buy the MOS March 60 Calls (O:MOS 10C60.00) at or under $3.50, good for the day. Place a protective stop limit at $2.10 and a pre-determined sniper sell at $5.90.
Dear Bottarelli Research Member,
First off, congratulations on your quick winner on Agnico-Eagle Mines (AEM – NYSE).
As I mentioned before, we’re currently operating in a market where we have to take the gains that come our way. If we hold onto any play for an extended period of time, it’s clear that the market will sweep our gains off the table. Therefore, we’ll continue to operate in a super-fast rifleman mentality. See profits, take profits.
Now, if you rolled the dice and decided to hold onto the second half of your AEM March 55 Puts (O:AEM 10O55.00), then all eyes will be on today’s announcement after the close. A double-top at $60 could easily push shares down below $55.00 on a weak number. But then again, a strong number could ignite a breakout to $67.50. Right now, I’d give the downside bias a slight edge, but it is pretty close. This is the essence of trading – gauging risk versus reward. No matter what happens, AEM is set to move aggressively up or down. Best of luck speculators!
In other news, we have two interesting earnings plays setting up for next Wednesday (one week from today). For the remainder of this week, there isn’t much in the way of earnings plays. The same goes for next Monday and Tuesday. But come Wednesday, we have earnings from recession-proof retailer Dollar Tree (DLTR – NASDAQ).
And we also have earnings from navigation-technology leader Garmin (GRMN – NASDAQ).
Since both companies have the proper combination of $1.00 strike price increments, appropriately priced premiums, and the ability to move aggressively higher or lower on earnings day, I’d like to get positioned in both plays right now.
Starting with DLTR, let’s get positioned using the DLTR March 50 Calls (O:DLTR 10C50.00) for $1.80 combined with the DLTR March 49 Puts (O:DLTR 10O49.00) for $1.30. With a combined value of $3.10, we’ll be in good shape for a move in either direction.
PLAY: Buy the DLTR March 50 Calls (O:DLTR 10C50.00) and the DLTR March 49 Puts (O:DLTR 10O49.00) for around $3.10, good for the day. Do not place a stop limit or sniper sell at this time.
Looking next at GRMN, let’s also get positioned using the GRMN March 33 Calls (O:GRMN 10C33.00) for $1.90 and the GRMN March 32 Puts (O:GRMN 10O32.00) for $1.55. With a combined value of $3.45, we’ll have a nice opportunity to profit off any substantial earnings-based move.
PLAY: Buy the GRMN March 33 Calls (O:GRMN 10C33.00) and the GRMN March 32 Puts (O:GRMN 10O32.00) for around $3.45, good for the day. Do not place a stop limit or sniper sell at this time.
In other news, our SHLD March 95 Calls (O:SHLD 10C95.00) have ticked up nicely from our entry price, so maintain your calls for more upside.
And don’t forget, we’re currently positioned for earnings from Barrick Gold (ABX – NYSE) tomorrow before the open (estimate is $0.57 per share).
We’re also positioned for earnings on for-profit education firm Career Education (CECO – NASDAQ) after today’s close (estimate is $0.33).
Continue to hold your CECO March 22 Calls (O:CECO 10C22.00) and CECO March 20 Puts (O:CECO 10O20.00) as well as your ABX March 36 Calls (O:ABX 10C36.00) and ABX March 35 Puts (O:ABX 10O35.00) going into these announcements.
And finally, as one last play, I’d like to get positioned to ride the upside momentum in the fertilizer sector using Mosaic (MOS – NYSE). Yesterday, fertilizer firm Terra Industries (TRA – NYSE) was acquired for a 25% premium, which has sparked upside momentum in the entire sector. From a chart perspective, MOS has maintained levels above the 50-day moving average, which could lead to extended weakness for the rest of the week. Let’s play this upside using March calls.
PLAY: Buy the MOS March 60 Calls (O:MOS 10C60.00) at or under $3.50, good for the day. Place a protective stop limit at $2.10 and a pre-determined sniper sell at $5.90.
And as always…
Lock and load!
Sincerely,
© 2012 CSR Group, LLC. All rights reserved. Published in USA.
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