Take DLTR Profts Now!
Plus, Sell GRMN Calls
PLAY: Sell your DLTR March 50 Calls (O:DLTR 10C50.00) and DLTR March 49 Puts (O:DLTR 10O49.00) at market, good for the day.
PLAY: Sell your GRMN March 33 Calls (O:GRMN 10C33.00). Hold your GRMN March 32 Puts (O:GRMN 10O32.00).
Dear Bottarelli Research Member,
Good morning. We’ve got a mixed bag of earnings today. First off, Dollar Tree (DLTR – NASDAQ) reported that Q4 profit rose to $135 million ($1.52 per share) versus $105.2 million ($1.15 per share) one year ago. Since analysts were calling for earnings of $1.44 a share, this is a nice earnings beat for DLTR. As a result, the stock is up 5% in the opening moments of trading.
The basket of DLTR March 50 Calls (O:DLTR 10C50.00) and DLTR March 49 Puts (O:DLTR 10O49.00) that we entered on February 17th $2.95 now trades for a total of $3.50, good for an 18.64% return. Go ahead and lock in these profits now!
PLAY: Sell your DLTR March 50 Calls (O:DLTR 10C50.00) and DLTR March 49 Puts (O:DLTR 10O49.00) at market, good for the day.
Next up is Garmin (GRMN – NASDAQ), who reported earnings of $1.43 per share, which handedly beat the Thomson Reuters estimate of $0.95 per share. The initial reaction in pre-market action was a 4% jump. But then, GRMN announced that they expect both gross and operating margins to decline this year. They also expressed concern that the navigation market is becoming a lot more crowded, with companies like Google, Nokia, Apple, and Research in Motion starting to offer free navigation software. This news reversed the stock’s initial upside move.
The basket of GRMN March 33 Calls (O:GRMN 10C33.00) and GRMN March 32 Puts (O:GRMN 10O32.00) that we entered on February 17th for $3.36 is now trading for $2.35. Let’s dump our calls and let the puts ride us into profitability.
PLAY: Sell your GRMN March 33 Calls (O:GRMN 10C33.00). Hold your GRMN March 32 Puts (O:GRMN 10O32.00).
As always, I’ll follow up throughout the trading session. But until then…
Lock and load!
Sincerely,
© 2012 CSR Group, LLC. All rights reserved. Published in USA.
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