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Wow didn’t realize ELF beauty was trading at $90 and has been on a tear since May of last year.
I see a couple possible opportunities for sympathy plays here on tickers in similar sectors that are reporting on different days.
ELF and Ulta Beauty
BJs and Costco
Yep, exactly. For example if BJs has good earnings/guidance on Tuesday you might also see Costco run and you could play that sentiment.
The benefit of playing Costco instead of BJs in that scenario would be that in addition to sentiment, you would also have implied volatility building up on the options as Costco’s own earnings date approaches, which works in your favor.
Costco has also been popping off and outperforming the market over the last 10+ years.
Can someone comment on BigLots. They have 39% SI and 5.9 days to cover. Does it have a potential for short squeeze?
Walmart, Target, TJ Max, and Ross beat estimates and raised forecast. I’m waiting to see positive ER from BJ’s and Dollar Tree.
Holding through earnings is purely a gamble. Playing sentiment and IV buildup and then closing before the actual event gives much better control of risk.
I changed my mind. BigLots just terminated their supply chain executive last week. Other retailers were saying how cheap freight cost helped them financially in Q1.
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Autozone AZO has been on a absolute tear for the past 12 months. it should have been a no brainer being aftermarket auto repair does well in economic downturns. Also, production issues with new vehicles and people hanging onto their older vehicles and fixing them. The industry had a slow start to the year but has picked up substantially in the last 2 months. should be a good one to keep an eye on.
Used car prices are still bubbled upwards so people are repairing their cars more than replacing still. Also considering Copart reported good earnings last week and given they specialize in damaged vehicles for repair, I would only assume Autozone, Advanced Auto Parts, etc would have had profitable quarters.
holy shit AZO is 2.6k/share? How have they not done a split or something?
48b market cap with 18m shares. Looks like the get a runup into earnings, beat, then get a sell off after. Looking for the same to happen and find some support at 2600 or 2500 to go long.
too pricey for me, but might look to play AAP instead
I was doing hypothetical outcomes, I got 3 out of 4 wrong. But my right call would have been really big (ANF). I think safe to say playing multiple ER outcomes is not a great strategy.
would be good to start tracking earnings more here too all. Don’t forget about this
MRVL is running on earnings and mentioned AI revenue will double over this next year. Could be a good runner into next week. PDD smashed earnings too.
HIBB was my main target for a sympathy or similar trends. Foot Locker FL got killed in their last ER (-30%), and HIBB was in that space. Today after ER, HIBB dropped -10%.
Here’s my hypothetical result - I didn’t do a single one (well, small play on NVDA PUT closed before ER). Basically 50% accuracy, But I think the wins would have greatly cover for the losses.