TSL which reports in the morning. I will not enter the play. I changed my mind. I'm not comfortable (I was hoping to see a big drop today). But the benefit with TSL is that it tends to make almost all of its earnings move intraday. That is, it usually doesn't make big gaps. So this gives me a chance to enter Calls or Puts after it reports.
DSW reports also reports in the morning. So I will take the trade before the close today.
Fundamentally it is 3 out of 10, therefore bearish. In the past it was consistent in beating earnings and revenues, but lately it has been struggling. The last six quarters it beat earnings and revenue estimates only three and two times respectively. So it is not doing good.
Technically, it is more bearish than bullish. See chart below.
I will buy October Puts. Likely the 30.0 Put because it is the only one with a reasonable spread. It was due to the big spreads that I did not preview it over the weekend. The reason I'm doing it now is because it tends to make big moves after reporting. That that will help nullify the wide spread if it goes my way. But keep in mind that this is a very risky trade.
