Sell Spectrum Brands Puts for 42% Gain

Sell to close the July 21, 2017 put on Spectrum Brands (SPB) with a strike price of $130 at $4.55 or higher (Symbol: SPB170721P130) for a 42% gain in less than one month.

These options have not traded today but the stock is falling fast so sell at higher of the mid-point between the bid and ask or the last trade to ensure you get the best price

Yesterday, Spectrum reported a bear trifecta by missing revenue and earnings estimates and lowering guidance going forward. Wal-Mart is pushing for lower pricing and all customers are pushing back on the amount of inventory they choose to hold.

We may come back and revisit bearish trades in this group as the pain from customer price squeezes is just beginning.

 

Stock Talk

John

John

SPB filled at $4.70
Thanks Linda !

Linda McDonough

Linda McDonough

Yippee! Nice work.

Linda McDonough

Linda McDonough

Dear Subscribers,

Spectrum Brands continues to sink today. The July 130 puts are now trading above the $4.55 price I suggested above.

I’m very happy about how this trade worked and would love to know how you made out on it. I’d appreciate if you could let me know on this quick survey.

Thank you!

Roger Dehring

Roger Dehring

Just closed my JUL 130/125/120 butterfly, Linda,

Booked just over a 200% gain. Still working on closing the one-third position of JUL 145/150 calls. Hard getting out for a minimal cost as there aren’t any bids. Will let it simmer until it fills. When that is done, will reduce my gain a bit under 200%. But still a fantastic trade, and QUICK!

Roger

John

John

Linda
Do you know what’s going on with the ANIP stuck by any chance?

John

John

John

That should read ‘ ANIP stock ‘ ?

John

Linda McDonough

Linda McDonough

John,
There is no news that I can find. I suspect investors are nervous because last quarter was a messy one. However, the company has had several new launches which should help this quarter. I’ll post an update as soon as I see some news. The report will be out this morning and the call at 10:30 am.
Linda

Linda McDonough

Linda McDonough

ANIP reported a decent quarter, not great but I think better than the bears were hoping. Revenue was $3M light, but still up 78% and earnings of $.74 were $.02 light. Guidance for the year straddles current estimates of $3.90. The stock is incredibly cheap. Earnings are growing 27% yet the stock trades with a P/E of 13. This doesn’t even take into consideration upside from the company’s corticotropin product. Call starts at 10:30 am but so far I think it’s a great buy on the dip.

Phil Ash

Phil Ash

Oops, forgot to close this out last week. Just closed at $5.80 for 78% gain. Will try to not pay attention more often. Thanks

Linda McDonough

Linda McDonough

Lucky you! Keep up the good work.

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