Trade Alert: Earnings

Another options trade on a former high-flyer.

Nov 25, 2024

∙ Paid

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Going To The Same Well Again

We placed a successful earnings trade on this stock a few months ago. At the time, here’s what we wrote about it:

This one was a high-flying growth stock a few years ago, and while the hype around it has long since faded, its fundamentals have gotten stronger. When it released earnings in May, it beat on both top and bottom lines; nevertheless, the stock has dropped about 10% since then. After that drop, it now has a Chartmill Valuation Rating of 7 (on a scale of 0 to 10). It also has a Piotroski F-Score of 8 (on a scale of 0 to 9), indicating strong financial health and a lack of dilution.

Today that stock is not quite as cheap—Chartmill’s valuation rating on it is now 6 instead of 7—but its technical rating is a 10. Its Piotroski F-Score is still 8.

The stock is reporting earnings after the close today, and we’re betting on another beat. If we’re right, we could have a gain of about 200% by the end of this week; if we’re wrong, we could lose up to 100%.

Details below.

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