Sell Big Lots Puts for 67% Gain
Sell to close the April 20, 2018 put on Big Lots (NYSE: BIG) with a strike price of $57.5 at $5.35 or higher for a 67% gain. Symbol (BIG180420P57.5)
Big Lots is dropping hard today on the backs of a weak number from competitor Dollar Tree (NSDQ: DLTR).
The market has been volatile so I suggest booking this significant gain. However, those with higher risk tolerance may choose to hold on for the company’s earnings release this Friday, March 9 before the open.
I will still update you on the results despite closing this trade today.
Stock Talk
Stuart Housden
Looks like this one has already got away from those of us waiting for e-mail alerts rather than pre-emptively polling the Investing Daily web-site repeatedly. My question is: do we expect a bigger drop on Friday (i.e. where we would able to ask for more than $5.35), or should we just leave the $5.35 GTC sell order in place?
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Linda McDonough
Stuart,
See my response earlier that I think you will have success placing a day trade with a price limit. That said, many stocks are trading down when results have any small crack (ugh, see Target yesterday) and I expect BIG to have many cracks.
Best,
Linda
Stuart Housden
My order at $5.35 just got filled! Thanks for a winner, Linda!
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George McMillion
Will be traveling off and on and with market so volatile decided to close out for lower profit.
Thanks Linda
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Paul
Closed for a good profit. Thank you Linda.
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Abhi A
its going down again.
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Steve Aarnio
Yep, I took the opportunity. Closed BIG at $5.10 for 61% gain. I’m happy with that. Now… hopefully FB will tank soon, ’cause I missed the boat on that one entirely.
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Linda McDonough
Subscribers-
An important update on BIG. Those still holding the puts should have a profitable day today.
Despite headlines that read of a $.17 gain, most of that is due to tax shenanigans. Most importantly guidance for the first quarter and the year is dismal. The stock is trading at $47.20 pre-open (it’s just 8 AM so this is likely to change).
The company’s conference call is not until 12 PM so management will not be able to “talk up” the stock before then.
Best of luck with your trading today and let me know how this works out for you.
Best,
Linda
Robert Hutmacher
Brilliant call Linda, keep them coming!!
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Chee L.
Closed this morning for $10.80. Fantastic gain on this trade! Thanks Linda
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