ASNA announces earnings tomorrow, and it may be worth watching if you're looking to get in long on this clothing retailer at bargain basement prices. www.marketwatch.com/...investing/stock/asna Truth be told, I generally dislike clothing retailers; in addition to just running their company effectively, they have to deal with changing tastes in a far more nimble fashion than other companies ... .
In any event, I'd like to acquire it lower, if at all. For instance, that Zig-Zag indicated resistance at between 6.30 and 6.40 looks like it would be a "good spot," and I would normally shoot for selling a short put there on the notion of either getting put the stock there or keeping the premium ... . Unfortunately, the Oct 21st 7 short put is only offering .25 at the mid; the 6 even less, which hardly makes that strategy "worth it." So, it's either (a) wait for a dip to 6.50-ish or (b) pass on it entirely ... .
The other option would be to short straddle it (i.e., the Oct 21st 8/8 short straddle). Unfortunately, there is also not enough premium in that setup (1.25 cr at the mid) to make that worthwhile either ... . I generally shoot to take short straddles off at 25% max profit and 25% of $125 is about $31/contract.
In any event, I'd like to acquire it lower, if at all. For instance, that Zig-Zag indicated resistance at between 6.30 and 6.40 looks like it would be a "good spot," and I would normally shoot for selling a short put there on the notion of either getting put the stock there or keeping the premium ... . Unfortunately, the Oct 21st 7 short put is only offering .25 at the mid; the 6 even less, which hardly makes that strategy "worth it." So, it's either (a) wait for a dip to 6.50-ish or (b) pass on it entirely ... .
The other option would be to short straddle it (i.e., the Oct 21st 8/8 short straddle). Unfortunately, there is also not enough premium in that setup (1.25 cr at the mid) to make that worthwhile either ... . I generally shoot to take short straddles off at 25% max profit and 25% of $125 is about $31/contract.
Comment:
Oh, wow. Looks like it's going to paint a new 52-week low. Off 23% to 6.25 in AH post-announcement.
