Extend Alert: Xerox (XRX)

By Jim Pearce • November 9, 2017

TRADE INSTRUCTIONS
Date: November 9, 2017
Name: Xerox
Symbol: XRX (NYSE)
Type: Extend
Extension Period: 3 months 

TRADE RATIONALE
I didn’t get the immediate bounce I was expecting from XRX after it released its third-quarter results two weeks ago, but I still think the market has it wrong so I’m extending this trade through the next earnings period.

Yes, top-line revenue dropped during the most recent quarter, but the company has acknowledged that was likely to happen all along. If it hits is fourth-quarter guidance then it should bounce back up to the $32 – 34 range, which represents at 10 – 15% increase over its current share price.

NOTE: The Stop Loss price for XRX has been revised to $27.50 given its longer hold period.

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Jim Pearce

Jim Pearce

XRX up more than 4% this morning on rumors of a potential merger with Fuji (https://finance.yahoo.com/news/xerox-talks-deal-fujifilm-010314554.html). We are now finally in the black with this trade, options traders may want to close out positions while there is momentum to the upside.

Dramatic License

Dramatic License

Thanks, Jim. This was a welcome move this morning! Turned a small loser into a big winner with a week to spare!

Benny K

Benny K

I agree DL. I was almost ready to pull the trigger the past few days before my position expired worthless on the 19th but glad I held on till this morning.

Dramatic License

Dramatic License

Just closed it out for a nice gain. I had already lost on this trade on some previous options, so this boosted me back into the black overall on XRX. I love that feeling. 🙂

Benny K

Benny K

Same here. I had a loss on some Nov. calls but am now back in black.

Dramatic License

Dramatic License

Wow, really wish I had held on to this one more day, but played it safe.

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