Options360

KSS earnings 11/17 at 7am, calendar spread strangle idea

Long
Options360 Updated   
NYSE:KSS   Kohl's Corporation
Kohl's earnings is tomorrow at 7am. I'm expecting an earnings surprise of a lesser loss. But because this market can go anyway depending on the day of the week, lol, which means KSS can hit a range of $22-28 tomorrow in my estimation. I entered a bullish calendar spread strangle. For me, I executed at 10:40am, the Put $25 strike price 11/27 expiry with the Call $30 strike price 4/16/21 expiry pairs, total $398 a pair. My reasoning behind this is: one - you don't want the week of earnings expiry because it can lose value quickly from theta, two - I'm bullish but I want insurance, three - I totally expect KSS to surpass 30 bucks by spring next year if it doesn't come close tomorrow if there's positive price action. Consensus: eps(-$.48), revenue$4.06 billion. Do your own due diligence, your risk is 100% your responsibility. Consider being charitable with some of your profit to help humankind. Small incremental steps work : If you double a penny for a month it = $5,368,709. Good luck and happy trading friends...

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Comment:
+100% eps surprise Earnings beat! Kohl's (KSS) reported 3rd Quarter October 2020 earnings of $0.01 per share. The consensus estimate was a loss of $0.48 per share. Revenue of $3.98 billion, slight miss of -2% revenue estimate of $4.06 billion.

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