Ulta Salon Cosmetics & Fragrance, Inc. (ULTA) Earnings after the Closing Bell, What to Look For

Ulta Salon, Inc. (ULTA) is a beauty retailer, who provides salon products and salon services. The stock is currently trading around $153.80 at the upper end of its 52 week range of $83.54-$158.97. The stock has been outperforming the market this year rallying 20.34% year to date. ULTA is scheduled to report earnings after the bell today, and the stock is falling ahead of the release. ULTA is lower on the session by around $0.98 or 0.63% ahead of the closing bell.

Over the past 12 quarters ULTA has rallied on earnings day 10 times with an average move of 11.57%. ULTA however appears bullish on a chart going into the release having risen $5.50 over the past couple days. Over the past 12 quarters ULTA has rallied from earnings to the nearest options expiration 10 times with an average move of 11.60%.The stock looks as if it could continue its trend and rip to the upside in today’s session. The area between the Senkou Span A line and the Senkou Span B line appears to be consistently changing its trend. Investors are looking to see how pulling back on discounts as well as revamping the loyalty program will affect the average order value. Other points to watch for are results from heavier investing in better messaging, more targeted promotions and employee training.

The options market is currently implying a move of around $14.4 or 9.40% in ULTA by this Friday’s close giving us targets of $139.4 and $168.2.

Michael Kors Holding Limited (KORS) Sees Bearish Options Activity after Earnings

Michael Kors Holding Limited (KORS) is a major player in global luxury apparel and accessories. KORS is trading at $46.62 around the lower end of its 52 week range of $46.10-$98.96. Year to date the stock has underperformed the market by quite a bit selling off 37.91%. The stock dropped today by about 23.04% or $13.96. This move happened after KORS released disappointing earnings before the bell this morning.

Early on a trader bought 9,000 of the KORS June 45.0 Puts for $0.35 when the stock was trading at $49.40. This order was recorded about an hour after the open on OptionHacker, and the stock dropped about $2.78 to $46.62 after the trade hit the tape. Over 16,300 have been traded today hinting at bearish sentiment. The KORS June 45.0 Puts for $0.35 have traded as high as $1.15 today making this a profitable trade. This trader is most likely establishing a short position expecting the stock to continue its bearish trend for a few weeks. This stock has been trading below the cloud for a few weeks now. The Ichimoku Cloud continues to grow and points the technical analysis in the direction of a bearish trend due to an increasing cloud size indicating a hard to reverse trend.

Trade: A trader bought 9,000 of the KORS June 45.0 Puts for $0.35
Risk: $35 per 1 lot
Breakeven: $44.65

If a trader bought a 20 lot of these puts they would have profited $1,600 at the highs on $700 in risk. A great example of profitable UOA.

Abercrombie and Fitch Co. (ANF) Sees More Unusual Bearish Options Activity Ahead of Earnings

Abercrombie and Fitch Co. (ANF) is a major clothing designer and retailer catering mostly to teens. ANF is trading at $19.99 around the lower end of its 52 week range of $19.34-$45.50. Year to date the stock has underperformed the market by quite a bit, at 30.24%. The stock dropped today by about 0.55% or $0.11. This move happened after an unusually large number of bearish options hit the tape yesterday and this morning.

Early on yesterday a trader bought 3,500 of the ANF May 29th Weekly 18.5 Puts for $0.32 when the stock was trading at $20.73. Over 3,600 contracts of the May 29th Weekly 18.5 Puts were traded yesterday hinting at bearish sentiment. The May 29th Weekly 18.5 Puts have since traded as high as $0.56 today making this a highly profitable trade. Today a trader bought 1,027 of the ANF May 29th Weekly 17.0 Puts for $0.13. This order was recorded about an hour after the open on OptionHacker. Over 5,500 contracts of the May 29th Weekly 17.0 Puts have been traded today hinting at further bearish sentiment into earnings.

Over the past 8 quarters ANF has rallied on earnings day only 3 times with an average move of 8.30%. ANF also appears bearish on a chart going into the release. The stock has been trading below the Ichimoku Cloud for around 4 weeks now, and appears to be continuing the downward trend in today’s session. The area between the Senkou Span A line and the Senkou Span B line appears to be increasing its size indicating a trend that is harder to reverse. Due to the stock’s historical performance on earnings day and weak technical data, it is hard to justify anything but a bearish trade in ANF.

The options market is currently implying a move of around $2.10 or 10.5% in ANF by this Friday’s close giving us a downside target around $17.82.

Palo Alto Networks, Inc. (PANW) Looking Strong on a Chart Ahead of Earnings

Palo Alto Networks, Inc. (PANW) provides a security platform to aid businesses, government entities and other organizations to restrict the number of applications running on their networks to prevent breaches. The stock is currently trading around $162.50 at the upper end of its 52 week range of $66.77-$165.09. The stock has been outperforming the market this year rallying 32.72% year to date. PANW is scheduled to report earnings after the bell today, Wednesday the 27th, and the stock is selling off ahead of the release. PANW is lower on the session by around $1.34 ahead of the closing bell.

Over the past 8 quarters PANW has rallied on earnings day 6 times with an average move of 6.30%. PANW also appears bullish on a chart going into the release. The stock has been trading above the Ichimoku Cloud for around 4 weeks, and looks as if it could rip to the upside in today’s session. The area between the Senkou Span A line and the Senkou Span B line appears to be steadily maintaining its size indicating a trend that is harder to reverse. This cloud continues maintaining its size still indicating a bullish outlook. Due to the stock’s historical performance on earnings day and strong technical data, it is hard to justify anything but a bullish trade in PANW.

The options market is currently implying a move of around $9.00 or 5.5% in PANW by next Friday’s close giving us an upside target around $171.50.

Is Abercrombie and Fitch Co. (ANF) Unusual Options Activity Ahead of Earnings Hinting at a Move Lower?

Abercrombie and Fitch Co. (ANF) is a major clothing designer and retailer catering mostly to teens. ANF is trading at $20.56 around the upper end of its 52 week range of $19.34-$45.50. Year to date the stock has underperformed the market by quite a bit, at 28.46%. The stock dropped today by about 1.44% or $0.30. This move happened after an unusually large number of bearish options hit the tape this morning.

Early on a trader bought 3,500 of the ANF May 29th Weekly 18.5 Puts for $0.32 when the stock was trading at $20.73. This order was recorded about half an hour after the open on OptionHacker, and the stock dropped about $0.29 to $20.44 after the trade hit the tape. Over 3,600 contracts of the May 29th Weekly 18.5 Puts have been traded today hinting at bearish sentiment. The May 29th Weekly 18.5 Puts for $0.32 have traded as high as $0.34 today making this a profitable trade. This trader is most likely establishing a short position ahead of ANF earnings later on this week. I will likely look to get short ANF ahead of the earnings release based on the bearish activity in the options market we are seeing.

Trade: A trader bought 3,500 of the ANF May 29th Weekly 18.5 Puts for $0.32
Risk: $32 per 1 lot
Breakeven: $18.18

Major Profits on Unusual Options Activity in Lions Gate Entertainment Corp. (LGF)

Lions Gate Entertainment Corp. (LGF) is a global company with diversified presence in television programming, home and family entertainment, and motion picture production. LGF is trading at $33.50 around the upper end of its 52 week range of $25.71-$35.75. Year to date the stock has outperformed the market, rallying 4.47%. The stock ripped up today by about 4.60%. This move happened after an unusually large number of bullish options hit the tape this morning.

Early on a trader bought 5,294 of the LGF July 35 Calls for $0.70 at the market price when the stock was trading at $32.99. This order was recorded about an hour and a half after the open on OptionHacker and the stock ripped about $0.46 after the trade hit the tape. Over 8,800 of the July 35 Calls have been traded today hinting at bullish sentiment in the options market. The July 35 Calls have traded as high as $0.95 today making this a highly profitable trade.

Trade: A trader bought 5,294 of the July 35 Calls for $0.70
Risk: $70 per 1 lot
Reward: Unlimited
Breakeven: $35.70

If a trader would have purchased a 20 lot of these calls they would have seen profits of $450 at the highs in a matter of hours. This trade is a great example of hugely profitable unusual options activity.

AutoZone, Inc. (AZO) Prepares to Release its Earnings

AutoZone, Inc. (AZO) distributes and sells automotive accessories as well as replacement parts in the United States. The stock is currently trading around $690.18 at the upper end of its 52 week range of $491.93-$705.00. The stock has been outperforming the market this year rallying 11.75% year to date. AZO is scheduled to report earnings before the bell on Tuesday the 26th, and the stock is selling off ahead of the release. AZO is lower on the session by around $1.21 ahead of the holiday weekend.

Over the past 12 quarters DE has rallied on earnings day 8 times with an average move of 2.14%. The stock has also rallied 8 times in 12 quarters from earnings day to the nearest options expiration. AZO also appears bullish on a chart going into the release. The stock has been trading above the Ichimoku Cloud since mid-February, and looks as if it could continue higher in today’s session. The Ichimoku Cloud appears to be growing in size indicating a trend that is harder to reverse. This cloud continues 26 bars in the future shrinking only slightly in size still indicating a bullish outlook. Due to the stock’s historical performance on earnings day and strong technical data, it is hard to justify anything but a bullish trade in AZO.

The options market is currently implying a move of around $32 or 4.6% in AZO by next Friday’s close giving us an upside target around $722.18.

What Are Traders Looking Ahead of Deere and Company (DE) Earnings This Quarter?

Deere and Company (DE) operates in three major segments including manufacturing and distributing, construction and forestry, and financial services. The stock is currently trading at the upper end of its 52 week range of $78.88-$93.78 around $89.71. The stock has been underperforming the market this year rallying a measly 1.25% year to date. DE is scheduled to report earnings before the bell tomorrow, and the stock appears fairly strong ahead of the release. DE is higher on the session by around $0.76 ahead of the report.

Over the past 12 quarters DE has sold off on earnings day 10 times with an average move of 2.63%. The stock has also sold off 10 times in 12 quarters from earnings day to the nearest options expiration. DE also appears quite flat on a chart going into the release. The stock is trading close to the bottom of the Ichimoku Cloud on the daily bar, and looks as if it could break to the downside in today’s session. The Kinjun-Sen line, similar to a 30 period DMA, appears flat on the chart as well. Due to the stock’s historical performance on earnings day and weak technical data, it is hard to justify anything but a bearish trade in DE.

The options market is currently implying a move of around $2.54 or 2.8% in DE by this Friday’s close giving us a downside target around $87.10.

Potential Trade: Buying the DE May 22nd Weekly 88-87 Put Spreads for $0.30
Risk: $30 per 1 lot
Reward: $70 per 1 lot
Breakeven: $87.70

Unusual Options Volume in Lululemon Athletica Inc. (LULU) Reaps Nice Profits

Lululemon Athletica, Inc. (LULU) is a major player for designing and selling athletic apparel. LULU is trading at $61.03 around the upper end of its 52 week range of $36.26-$70.00. Year to date the stock has increased over the market, by $5.71 or 10.23%. The stock dropped today by about 3.12%. This move happened after an unusually large number of bearish options hit the tape multiple times this morning.

Early on a trader bought 1,290 of the LULU May 29th Weekly 60 Puts for $0.49 at the market price when the stock was trading at $61.72. This order was recorded about half an hour after the open on OptionHacker and the stock dropped about $0.75 after the trade hit the tape. Another trader bought 1,264 of the LULU June 26th Weekly 55 Puts for $1.14 when the stock was trading at $61.37. Over 3,800 contracts of the May 29th Weekly 60 Puts and 2,700 of the June 26th Weekly 55 Puts have been traded today hinting at bearish sentiment. The May 29th Weekly 60 Puts for $0.49 have traded as high as $0.78 today making this a highly profitable trade.

Trade: A trader bought 1,290 of the LULU May 29th Weekly 60 Puts for $0.49
Risk: $49 per 1 lot
Reward: Unlimited
Breakeven: $59.51

If a trader would have purchased a 20 lot of these calls they would have seen profits of $580 at the highs on $980 in risk. This trade is a great example of hugely profitable weekly unusual options activity.

How Does L Brands, Inc. (LB) Look for the Earnings Report After the Close Today?

L Brands, Inc. (LB) is a women’s intimate, beauty and personal care products retailer. The stock is currently trading at the upper end of its 52 week range of $55.33-$95.78 around $88.63. The stock has been trading fairly strong this year with shares appreciating around 2.4% year to date. LB is scheduled to report earnings after the bell today, and the stock appears to have gained some ground ahead of the release. LB is higher on the session by around 0.44% or $0.38.

Over the past 8 quarters LB has sold off on earnings day 4 times and ripped up 4 times with an average move of 1.50%. LB also appears very weak on a chart over the past 2 months and going into the release after the bell today. The stock is trading at the bottom of the Ichimoku Cloud on the daily bar, and appears as if it could break to the downside in today’s session. With earnings coming up and the stock looking bearish on the chart it is hard to justify anything but a bearish trade in LB.

The options market is currently implying a move of around $4.60 or 5.2% in LB by this Friday’s close giving us a downside target around $84.03.L Brands, Inc. (LB) is a women’s intimate, beauty and personal care products retailer. The stock is currently trading at the upper end of its 52 week range of $55.33-$95.78 around $88.63. The stock has been trading fairly strong this year with shares appreciating around 2.4% year to date. LB is scheduled to report earnings after the bell today, and the stock appears to have gained some ground ahead of the release. LB is higher on the session by around 0.44% or $0.38.

Over the past 8 quarters LB has sold off on earnings day 4 times and ripped up 4 times with an average move of 1.50%. LB also appears very weak on a chart over the past 2 months and going into the release after the bell today. The stock is trading at the bottom of the Ichimoku Cloud on the daily bar, and appears as if it could break to the downside in today’s session. With earnings coming up and the stock looking bearish on the chart it is hard to justify anything but a bearish trade in LB.

The options market is currently implying a move of around $4.60 or 5.2% in LB by this Friday’s close giving us a downside target around $84.03.