Sell LB Puts

By Linda McDonough • December 1, 2016

Sell to close the January 20, 2017 puts on L Brands with a strike price of $68.5 at $1.45 or higher. Symbol (LB170120P68.5)

Despite L Brands issuing negative news in its third quarter earnings release two weeks ago and on its November sales report today, the stock is trading higher.

When I get the news I’m looking for but not the stock action, it’s time to bail out of a position.

I hate booking a loss but don’t see the stock moving lower if it hasn’t already.

L Brands reported an in line level of November sales but specifically noted significantly lower profitability due to severe mark downs.

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12/01/16 ‐ 10:15am ET December 1, 2016 at 10:15am ET

Thanks Linda,
I have an order in to sell to close , right now mark is 1.075 so I may have to lower from 110 yup lowered to 105 and that worked.

Rick

12/01/16 ‐ 10:45am ET December 1, 2016 at 10:45am ET

Linda, I am pleased to close this position – frustrating that it did not move as expected but wise to get out now. I put limit to close at 1.45 but right now closer to 1.15 is market, but I’ll wait for now.

Rick

12/02/16 ‐ 1:39pm ET December 2, 2016 at 1:39pm ET

I’m out at 1.25.

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Linda McDonough

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Linda McDonough is a veteran hedge fund analyst who loves to break down company financial statements and identify market inefficiencies to uncover big opportunities. She believes in a boots-on-the-ground approach that includes surveying customers, interviewing company executives, or doing whatever it takes to see what others don't.

She's now brought her experience as a hedge fund analyst to subscribers of her Profit Catalyst Alert service. Her system identifies small- and mid-cap stocks that are about to move due to catalytic events that few others can identify...until it's too late. These events often times result in massive gains for her followers.