November 22, 2019  Terry’s Tips Trade Alert #3 – Earnings Eagle  Portfolio   

  

BURL announces before the close on Tuesday, November 26. The options are pricing in a 9.1% move while the recent post-announcement move has been 9.9%.  This doesn’t give us much of a margin but the spreads are so cheap that a flat price would be a huge windfall. 

 

BTO 3 BURL 17Jan20 180 puts (BURL200117P180)

STO 3 BURL 29Nov19 q80 puts (BURL191129P180) for a debit of $2.10  (buying a calendar)

 

BTO 3 BURL 17Jan20 190 puts (BURL200117P190)

STO 3 BURL 29Nov19 190 puts (BURL191129P190) for a debit of $2.60  (buying a calendar)

 

BTO 3 BURL 17Jan20 200 puts (BURL200117P200)

STO 3 BURL 29Nov19 200 puts (BURL191129P200) for a debit of $2.70  (buying a calendar)

 

BTO 3 BURL 17Jan20 200 calls (BURL200117C200)

STO 3 BURL 29Nov19 200 calls (BURL191129C200) for a debit of $3.05  (buying a calendar)

 

BTO 3 BURL 17Jan20 210 calls (BURL200117C210)

STO 3 BURL 29Nov19 210 calls (BURL191129C210) for a debit of $3.10  (buying a calendar)

 

BTO 3 BURL 17Jan20 220 calls (BURL200117C220)

STO 3 BURL 29Nov19 220 calls (BURL191129C220) for a debit of $2.65  (buying a calendar)

 

Be prepared to change this (these) price limit(s) by $.05 or more in order to get an execution

 

Happy trading.

Terry