DRI = Earnings Option

Here is an example of a underlying securities coming up with a negative surprise on earnings.  Post Earning is always better than hold through the unknown.

Friday, Sep 20
7:32 AM
Darden Restaurants misses by $0.17, misses on revenues
  • Darden Restaurants (DRI): FQ1 EPS of $0.53 misses by $0.17.
  • Revenue of $2.16B (+6.1% Y/Y) misses by $0.04B.

DRI DRI Option

As you can see the slide of this disappointment, made the put side explosive.  Trigger line was done when the Previous day low and did not recover at the 9:45AM ET.  Idea-Trade was to pick up the DRI SEP 47 P for a nice ride down into the 10:30AM ET reversal time frame.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s