Sell the Williams Sonoma Calls for a 4-day 38% gain.
Sell to close the January 19, 2018 call on Williams Sonoma (NYSE: WSM) with a strike price of $52.5 at $2.75 or higher for a 38% gain. Symbol (WSM180119C52.5)
I may be a bit gun-shy based on the harsh stock reactions to Dicks Sporting Goods and Target’s quarters earlier this week, but I suggest selling the Williams Sonoma calls for a speedy quick 38% gain.
The company reports earnings tonight after the close. I do expect earnings to be solid but a pattern of soft stock action despite beating earnings has me eager to book this gain. For those that choose to stay involved, I will post a review of the quarter tomorrow morning.
As always, please let me know how you did on this trade, either by posting here or filling out this 90- second survey.
Stock Talk
Tyler
Thanks Linda. Got a fill at $2.90. I’ll take the the quick and nice ROI.
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Paul
Got filled at $3.10. Thanks Linda.
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MODERATOR: Lisa G
Filled at 3.20. Waiting until around 3 might get you more.
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Derek: Las Vegas, NV
Closed for a 28% gain. I’ll be out of the other two in 15 & 29 days…
Derek
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Steve
Closed for $3.09. Thank you!
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Derek: Las Vegas, NV
Good call on selling early! WSM down about 9% after hours…
Derek
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Linda McDonough
Hello Subscribers,
Willams Sonoma (WSM) is down almost 10% before the open after reporting earnings last night. I suggested selling the calls yesterday because of the whip-saw action in Dicks Sporting Goods (DKS) and Target (TGT) earlier in the week.
I am happy to have sold the calls at a great profit but am honestly befuddled by the stock action today. WSM’s sales are doing great. It is one of the few retailers I see reporting comp store sales in the mid-single digits (sales at stores open more than one year, this is a metric that removes the impact of new store growth).
Although the lower end of fourth quarter guidance is below estimates, it incorporates much higher expenses and leaves some breathing room for the company to beat guidance.
There is not much to do if you still hold the calls this morning but to wait and see if the stock rebounds. Dicks, which saw similar action earlier in the week, has since rebounded.
Best,
Linda
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JVP
sold wsm call at $3.10 for a 52.5% gain in only 5 days.
Linda, great call especially since wsm down 9% after earnings announcement.
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DR083157
my bad but I did not get out of WSM yesterday, though the position I have is a little different than what you recommended. I have a put credit spread for January of 47.5 (sold puts for 47.5) and bought puts for $45. It would be expected to bounce above $47.5 by then right?
Linda McDonough
Apologies for the late reply. Your comment got lost in the shuffle. I cannot give specific advice but do think WSM is way oversold and if I liked the $52.5 calls, you can infer that I believe it can get to that level.
Best,
Linda
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Jeffrey Shultz
Classic shoulda, woulda, coulda. Followed your advice with the WSM $52.50 calls, 10 contracts, 2 bucks even. Got a wicked case of bronchitis and didn’t feel like checking my email yesterday. You know, the one where you said SELL!
Yep, got up this morning and read it, checked where it closed and thought I was in for a payday. HA!
OK, learned my lesson. I added my phone to your text alerts service and I’ll be paying a whole lot more respectful and prompt attention to you in the future, Ms. McD.
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