Sell VFC puts for a 53% gain

By Linda McDonough • July 22, 2016

VF Corp’s reported sub par earnings this morning. The stock is currently trading below the 62.5 strike of the August puts we recommended on Wednesday.

SELL the August 62.5 puts at a price of $2.00 or above for a swift 53% gain.

 As we predicted management pushed out revenue and profit growth to the end of the year, a strategy based on hope that retailers experience a resurgence in demand. Retailers, stuffed with too much inventory are holding off orders.

We see no good news on the horizon for VFC and will likely revisit this trade.

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Jack H

Jack

Just now saw your alert and was able to exit for 1.70, not bad for one day.

Moderator: Navy64Chuck

Navy64Chuck

Hi Linda,

I should have been watching VFC at the open this morning–but wasn’t, and didn’t start paying attention to the market until noon when Jim usually posts his expiration day rolls/trades for VT/OFI. So I missed the quick profit. But since the outlook for VFC is poor, there is still time before Aug expiration, and no big deal.

As you start to do more options in PCA, please consider accompanying your web posting with a text message alert that gets our attention if we are not monitoring the market when you post. The system works well in OFI/VT.

Thanks so much.

Linda McDonough

Linda McDonough

That’s an excellent idea- thank you. I’m just learning the ropes for the best way to make these option trades work for subscribers so I appreciate the input. I think you should do fine holding on to the puts for a bit. I haven’t seen any downgrades on the stock yet but will keep you updated if I see anything new.
Best,
Linda

Maria R

Maria R

Is there anyway I can get an tex alert on my cell phone when you are suggesting option trades? I called member services and was told that I am already on the system but I am not getting the VFC trade alerts. I am getting OFI and VT but not PCA.
Thank you.

Linda McDonough

Linda McDonough

Hi Maria,
Yes we are working on making sure text updates are sent out with alerts.
Linda

Guest User

Guest User

By the time I got your sell alert notice. The stock had dropped below the 1.50 mark, thus I’m still holding. I’m expecting we still have some time but please keep us informed. Thanks

Linda McDonough

Linda McDonough

I will certainly keep you up to date on the stock. I’m watching it closely.
Linda

Robert Stalowski

Robert Stalowski

I was told that I would be informed of the tiny tech stock that major companies are investing in, thus far I haven’t been told. What is the hold up? I hope this isn’t a scam.

Robert Frick

Robert Frick

Hello Robert.

I’m not sure where the wires got crossed, but as a subscriber you should have been told that tiny tech stock is Criteo, which is now up 10% from our initial recommendation in March. Here is our first story on the company:

http://www.investingdaily.com/profit-catalyst/articles/24889/profit-from-online-advertising/

And just last week we posted this updated in our Profit Catalyst Weekly letter:

On Aug. 3 Criteo (CRTO) reported second quarter earnings per share of 32 cents, which beat analyst expectations by 4 cents. Revenue of $407 million for the quarter increased from Q2 2015 revenue of $271 million by 50%.

Revenue from mobile advertising represents over half of Criteo’s business. Facebook, Criteo’s most high-profile customer (though it only accounts for 9% of its business), reported another blowout quarter in mobile advertising. Mobile ad revenue for Facebook rose 80% to over $5 billion and now represents 84% of all advertising.

Criteo also added a record number of 900 new clients in the second quarter for a total of 12,000 clients. For 20 consecutive quarters the company has maintained a client retention rate of 90%.

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