Hi friend,

Recapping yesterday's three bonus earnings plays:

ROKU bearish -- one of you said it best. Dud.  They blew out earnings.  The stock went crazy.  I lost the $65 on my spread and was real glad I wasn't just short the stock.  Risk control pays off when you're wrong.  Looking back at my analysis of the data it was just too picky.  

YELP bullish -- holy cow what a huge winner.  Lotto play on the OTM call options paid big.  The September 43 calls that were going for a buck yesterday are now worth $7!!  Huge winner :)

REV bearish -- LF data continues to nail this one.  Disappointing sales and the stock is down 8% on the day.  Solid solid trade.

So... 2/3 with winners far outpacing losers.  I love it.

PRESS MY LUCK?

YOU BET.

$PLNT reports tonight.  Here's the scoop.

PLNT_PI_90dayMA

Everything in the data tells me it's going to be a nice quarter.. but that Weight Watchers action earlier this week is scaring me.  LikeFolio data nailed it--- the quarter was amazing... but the stock sold off big on the report! 

So I'm going to keep my risk very very limited and put some duration onto this trade:

I'm looking at the NOV 55 calls for 2 bucks.  A $200 max loss doesn't scare me after yesterday's gains... and the expiration is far enough out that if they do happen to disappoint, you've still got an opportunity for another quarterly report to get you back in the game.

If you have a desire to actually own PLNT stock, I would consider selling puts underneath of the market.  Perhaps the 45 puts that expire this month.  That way if they pull a Weight Watchers and drop, you pickup the shares at 45, but if they move higher on a great report, you profit the 75-80 cents that the put option sold for and move on.  

That's it for today.... yesterday was just too much fun not to throw another flyer at you :)

Good luck to all of us!

Andy Swan

founder, LikeFolio