Wingin' It

I love chicken wings. I have to side with Herb Greenberg in that I don't get why people are buying chicken wing stocks, or how Buffalo Wild Wings (BWLD) has done so well. I've never really enjoyed my visits to this chain. I don't dislike it, but if I want wings, beer, sports, or all three, BWLD never comes up on my radar. The stock has enjoyed an incredible run, and while the 18.5% short interest worries me a bit, I am taking two bearish plays into earnings. The first is a May $95-$85-$80 skip-strike-put butterfly for around $3. The second is long a June $95 put, long a May $90 put and short 2x May $85 puts for around $5.40. My downside targets are $90 and $86, based on the charts.

Buffalo Wild Wings (BWLD) Source: StockCharts.com View Chart » View in New Window »

On the flip side, I'll take a long flyer, similar to a lottery ticket, into Riverbed Technology's (RVBD) earnings via a long May $15-$18 call spread and short a May $12 put for around $0.65. One alternative on the put side, would be to use a ratio put spread rather than a naked put. In this case, using a long 1x May $13 put and short 2x May $12 put brings the overall cost of the trade up to $0.83, but provides much more downside protection. There is a nice big gap for RVBD to fill and options are looking for a $2-plus move here, so I like the risk-reward. Under $12, and I see value in RVBD, so I am willing to own below those levels....113 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

Read the full story and get access to the Real Money Pro trading floor.

There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.

Already a Subscriber? Please login.

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.