Here is what I believe is happening.
DDS is in a cup and handle pattern, with the initial handle under formation.
1. Its currently short term over sold, but now quiet there. the recent bullish surge was very strong and reason to drop down further seems to get harder.
2. Initial Handle formation is in the process. It may be up to 30% of the cup and take...
Dillards has been strong the last few days, but I look for it to fall back to 47. Buying the 42.5 Put and selling the 50.0 Put. May 19th expiration and with earnings May 11th I will manage this with that in mind.
I like this stock, to take an options trade ahead of earnings. A pop to $66 would be a significant profit, buying the March 17th, 70 strike calls here.
Risk is low, just buy enough to spend 0.5-1% of your capital on the premium.
Good luck,
Ivan Labrie.
Dillards DDS found support on multi year lows about 5 times in the last 8 months depending on how one wants to measure it. Greenlight Capital disclosed in its latest investment letter that Einhorn is bullish on Dillards and has built a position. On the option front, 1,250 May 55 puts appear to have been sold on January 11th around $5.20.
We target $73, while...
Today shares of retailer Dillard's, Inc. (NYSE:DDS) are getting smacked down to the tune of 7%, as the company reported earnings which did not meet analysts expectations. Dillard's, Inc. (NYSE:DDS) has been a stellar performer this year, as it shares were up as high as 28% year to date. How things have changed.
So with this massive drop in the stock, I look at...
