Charting Ideas
Even when I sit out earnings, I still like to chart the stocks and look at the plays I would consider just so I have a measuring stick and a review of my thought process later. Today has a few high beta names in the forefront, along with big names, such as Disney (DIS). I generally don't fool around with the Mouse. We see enough of him in this house as it is, so no need for me to introduce him into my work like as well.
Panera Bread (PNRA) Source: StockCharts.com View Chart » View in New Window »Panera Bread (PNRA) is another name that makes it into this house quite often. This stock has had quite a run. Calls are more active than puts going into earnings with options looking for a 7.75% move. Frankly, I don't see it. I only foresee a move around 5% to 6%, so it makes front-month options rather unappealing to me. The other issue here is the strength of the stock makes it ripe for a pullback, but this earnings season, strong into earnings has often resulted into strength after earnings especially for high-fliers. Some calendar or diagonal spreads may be attractive here or even some iron condors, but I just don't see an attractive straight-up play. Upside looks to be around $170 and downside about $151....292 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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