The bears got off to a good start as the pushed the bulls back at the open but as the day has progressed, the bulls are making a slight comeback. There were a number of earnings we highlighted yesterday as possible trade candidates and although we sat on the sidelines, the action has been fun to watch.
Shares of Bed Bath & Beyond (BBBY, $63.50, down $5.29) are down nearly 8% after the company missed Wall Street’s numbers. B-cubed reported a profit of 97 cents a share on sales of $2.59 billion versus a forecast of $1.02 a shares on revenues of $2.54 billion after Wednesday’s close.
The stock was down over 4% to $65.75 in extended trading last night and those losses have held up. A close below $64 could lead to even more selling pressure and the low for the day has been $62.19.
The October 65 puts (BBBY121020P00065000, $2.63, up $1.01) are up a cool 62% after closing at $1.62 yesterday and have traded to a peak of $3.60. Keep these on your Watch List.
Elsewhere, CarMax (KMX, $29.74, down $2.23) is down 7% after they missed estimates by 3 cents. The company reported a profit of $112 million, or $0.48 a share on revenue of $2.76 billion. The suit-and-ties were looking for $0.51 a share on revs of $2.81 billion.
The CarMax October 31 puts (KMX121020P00031000, $1.43, up $0.34) are up over 30% and have kissed $1.65.
As we head to press, the Dow is down 11 points to 13,566 while the S&P is lower by 3 points to 1,457. The Nasdaq is off nearly 10 points to 3,173.
We have a lot to cover today inside our Members Area as we are locking in profits on 2 more trades and we are recommending a NEW TRADE as well. Subscribers, check the Members Area for the updates and use limit orders to get the best fills.
We will be back in the morning with a full report as we get ready for Triple-Witching Day!