Stock Talk – December, 2016

Stock Talk

David Miller

David Miller

So I tried shorting LB and that worked out poorly. Now today I will short Big and on the 6th short play when I should have stayed in Tvix. That is up 9% today but you better have money to loose to play that one.

Linda McDonough

Linda McDonough

David,
I share your frustration. Especially on LB where I thought the news was pretty bad. I certainly didn’t see the retailers leaping in conjunction with the Trump win, which set us under water with the position before the news even came out. BIG’s quarter was no treasure. The company continues to transition into a furniture store that allows customers to finance not only mattresses and couches but the pillows and sheets that go on them as well. I’m watching this one closely and will close out the trade if I have to but think it could trend lower due to less than hoped for sales.

Straight stock options are risky enough, I’m not sure I have the stomach for a double dose on the VIX!

Linda

Dr. C

Dr. C

So Linda, how confident are you in the PLAY earnings miss? The date is the 6th, would you be recommending a doubled up position or back off the recomendation??

Linda McDonough

Linda McDonough

Dr. C,
It’s very difficult to be absolutely confident on short sales. Even worse in a situation like LB, I was correct on the fundamentals but wrong on the stock action. That said, I’m due for a big win so maybe PLAY is the one! Insiders just bailed out of another 2.7 million shares on September 13 at $42. In a perverse way this means they probably won’t completely miss the current quarter for fear of a lawsuit. I do expect a continued unwind in the sales numbers and problems to arise in the fourth quarter when they’ve run through the benefit of electronic game cards. The good news is our strike does not require the stock to fall much to be in the money, when the option prices really gain steam.
Thanks for the continued interest.
Linda

David Miller

David Miller

Ouch , what happened. I feel like the lemming going off the cliff. I just joined and followed your last three picks on earnings and got hammered all three times. First L Brands, then Biglots, and now Dave and busters going bust. Yes I traded short all three times on your recommendation and became a three time big looser. It was not Dave and busters that went bust it was me.

Linda McDonough

Linda McDonough

David,
I have reiterated how difficult timing short sales is. These three trades have been bearish trades and the market has been screaming upward. That said, PLAY beat numbers handily due to exclusive games it brought in.

The prior option trades did exceedingly well. The risk/reward on options is magnified versus the price move of a stock. I am working hard to get more trades out that do well.
Best,
Linda

David Miller

David Miller

Thank you Lulu for regaining a large part of my play loses. I think tomorrow going long RH will make me even again. Something for you all to watch tomorrow after hours.

David Miller

David Miller

Since Dec 7 I see no posts . Can you please let me know something.

Linda McDonough

Linda McDonough

David,
Are you looking for an update on a particular stock? I post a weekly portfolio update each Monday which can be found under the Articles tab.The monthly full update was posted on December 20 which can be found on the home page and we’ve had 3 new option trades and 2 stock trades since early December. Those can be found under the Alerts tab.
Best,
Linda

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