thomberg1201 7:29 am on Tuesday, September 13, 2016
Tags: Earnings ( 3,108 )

LULU #earnings It looks like…

LULU #earnings
It looks like I’m going to be put 100 shares of LULU on Friday from an earnings trade gone bad. I sold an IC and the 70/65 spread is in the money. I can sell the 65 put and have a cost basis of about 68 with LULU hovering at 65, sell calls to get out of it, or I can take the loss which will be around $400-ouch.
Any suggestions?

fuzzballl 7:39 am on Tuesday, September 13, 2016

Sitting right at the 200 now. If that doesn’t hold it could see 60 or lower. If you’re ok holding it awhile and writing calls that would work eventually. I usually book the profit on the protective side of spreads if it looks like I’ll be taking the stock anyway.

Guess you could always roll out somewhere for a credit also…out to Oct for .75 credit or out and down to Dec 65 for even (if we get a little bounce)

JMHO…
Jeff 7:41 am on Tuesday, September 13, 2016

I would base it on your sentiment on the stock and the market. If I felt it would recover, I would sell the longs and take the stock. LULU fundamentals seem decent, but not sure about the market.

I did the same thing with AVGO, only to see it drop much more (still in it now). On the other hand, was able to get out of the same situation in LOW with a nice profit.
thomberg1201 8:17 am on Tuesday, September 13, 2016

Thank you guys. It wouldn’t take long to bring in $400 selling calls and I could hedge with a long put.
geewhiz112 12:23 pm on Tuesday, September 13, 2016

$LULU bad loss on my BUPS as well. I have found that closing out has been wiser for a large majority of my trades. Keeping stock had disproportionately added to my loss. And, market not looking too bullish.
Good luck with what you choose
- thomberg1201 12:32 pm on Tuesday, September 13, 2016
  
  Thank you-I’m leaning toward taking the loss….