“Cut-to-the-Chase” Recommendations
- Week Beginning 10th August, 2015 -

12th August, 2015

**OPTION TRADE: Buy the NFLX Aug 2015 123.000 call (NFLX150814C00123000) at approximately $0.90.

Netflix, Inc. (NASDAQ: NFLX), a provider of Internet television network, is currently up more than 150% year to date, and the rally shows little sign of stopping from a pure price perspective.

When Netflix reported second-quarter earnings on July 15, the company beat estimates and showed impressive user growth numbers, as well as a bullish outlook. As a result, NFLX stock blasted 26% higher, and it continued its rally into last week on the back of analyst upgrades.

Besides the bullish outlook, there is another reason NFLX stock is surging. With the S&P 500 and other broader U.S. equity indices largely stuck in boring trading ranges, fund managers are being forced to chase higher the few single company growth stories out there, such as Netflix, Starbucks Corporation (SBUX) and Facebook Inc (FB).


12th August, 2015

**OPTION TRADE: Buy the JCP Aug 2015 8.000 put (JCP150814P00008000) at approximately $0.30.

J C Penney Company Inc (NYSE: JCP), is expected to report second-quarter profit above analysts' average estimate. CEO Myron Ullman, credited with reviving sales and profit, has stepped aside, handing over the reins to former Home Depot exec Marvin Ellison, who began his job on Aug 1.


12th August, 2015

**OPTION TRADE: Buy the BABA Aug 2015 75.000 call (BABA150814C00075000) at approximately $0.30.

Alibaba Group Holding Ltd (NYSE: BABA), an online and mobile commerce company, will report its earnings for the first-quarter of fiscal 2016 (1QFY16) tomorrow, 12th August, which is likely be an upbeat Q1 result on lower expectations.

Deutsche Bank weighed in on the upcoming quarterly earnings. It stated that Alibaba can potentially come up with an easy beat, given the 0.7% reduction in sell-side revenue expectations, and a 4.4% cut in FY16 non-GAAP net profit estimate in the past three months.

Alibaba is expected to post a profit of 58 cents per share, up roughly 40% year-over-year, on revenue of $3.4 billion, up 33.6% from year-ago levels. The whisper number currently forecasts earnings of 63 cents per share.


11th August, 2015

**OPTION TRADE: Buy the M Aug 2015 65.000 put (M150814P00065000) at approximately $0.65.

Macy's, Inc. (NYSE: M) is likely to report second-quarter profit below analysts' average estimate on Wednesday. It had forecast profit to be lower than a year earlier as it was forced to mark down merchandise received late due to a strike at the West Coast ports and as foreign tourists spent less at its Macy's and Bloomingdale's department stores due to a strong dollar.

Activist investor Starboard Value took a stake in the company last month and said Macy's should consider spinning off its sizable real estate portfolio.


10th August, 2015

**OPTION TRADE: Buy the LYV Aug 2015 27.000 call (LYV150821C00027000) at approximately $0.30. Sell at 100% or use your own judgment.

Live Nation Entertainment (NYSE: LYV) is set to issue its Q215 quarterly earnings data on Monday, August 10th. Analysts expect the company to announce earnings of $0.07 per share and revenue of $1.70 billion for the quarter.



10th August, 2015

**OPTION TRADE: Buy the SYMC Aug 2015 22.000 put (SYMC150821P00022000) at approximately $0.30. Sell at 100% or use your own judgment.

Symantec Corporation (NASDAQ: SYMC) the antivirus and security software maker best known for its Norton antivirus software, is expected to report first-quarter earnings slightly below analysts' expectations on Tuesday.

Cyber security companies are riding a wave of demand from enterprises for network security in the face of sophisticated cyber attacks, But, Symantec, whose security products come bundled with personal computers, has been struggling with weak PC sales.

Sluggish demand for storage and data management software has also diminished the value of its cash-cow Veritas business. Symantec is in talks to sell the unit to private equity firm Carlyle Group, a source told Reuters last month.


10th August, 2015

**OPTION TRADE: Buy the KING Aug 2015 15.000 put (KING150814P00015000) at approximately $0.70.

King Digital Entertainment PLC (NYSE: KING) is set to issue its Q215 quarterly earnings data on Monday, August 10th. Analysts expect the company to announce earnings of $0.07 per share and revenue of $1.70 billion for the quarter.



10th August, 2015

**OPTION TRADE: Buy the FRPT Aug 2015 15.000 put (FRPT150821P00015000) at approximately $0.30.

Freshpet Inc (NASDAQ: FRPT) is scheduled to be posting its Q215 quarterly earnings results on Tuesday, August 11th. Analysts expect Freshpet to post earnings of ($0.05) per share and revenue of $27.22 million for the quarter.

Freshpet, Inc. reported an earnings surprise of -60% when the company last reported earnings for the period ending on 2015-03-31. The reported EPS of $-0.08 was $-0.03 away from what Wall Street analysts had expected. A significant surprise factor often results in stock volatility and sharp price movements following the earnings announcement. In terms of sales expectations, the surprise factor in per share dollar terms was $0.345 away from what analysts had projected for the quarter, or a difference of 1.291%.

Looking ahead, Freshpet, Inc. is expected to issue their next earnings release for the current quarter on 2015-08-11. Wall Street analysts surveyed by Zacks Research are projecting earnings per share of $0.01. This is the consensus number based on the 4 estimates taken into account. Investors will be closely watching the EPS estimate movement leading up to the expected report date.



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