Cal-Maine’s Egg-Breaking
Earnings Report

Cal-Maine Foods Inc. (NASDAQ:CALM) Option Puts

Provides 257% Profit After The Earnings Call!

by Ian Harvey

January 11, 2018


Cal-Maine Foods Inc. (NASDAQ:CALM)

Here is an update of Cal-Maine Foods’ winning options put trade after reporting earnings. This options trade was recommended, to “Cut-To-The-Chase” Members of Stock Options Made Easy, on Wednesday, January 03, 2018 -- in the article ““Cut-to-the-Chase” Recommendations - Week Beginning Monday, January 01, 2018”; which produced excellent potential profits of 257% within 48 hours of executing the trade!


The Recommendation……

…….from ““Cut-to-the-Chase” Recommendations - Week Beginning Monday, January 01, 2018”.

The Details……..

Cal-Maine Foods Inc. (NASDAQ:CALM), a producer and marketer of shell eggs in the United States, is expected to report earnings on Friday, January 05, before the market opens. The report will be for the fiscal Quarter ending Nov 2017. Analysts' forecasts that the consensus EPS forecast for the quarter is $0.5. The reported EPS for the same quarter last year was $-0.48.

And Cal-Maine Foods put options were on the move yesterday. A large number of contracts represents approximately 183,400 underlying shares, working out to a sizeable 54.6% of CALM's average daily trading volume over the past month, of 335,650 shares, was present for the day.

 Cal-Maine has been a challenging company to both analyze and invest in. All commodities go through up and down cycles. For shell eggs, the avian influenza outbreak during 2015 led to an extreme loss of hen laying egg production, concurrently leading to higher egg prices and substantially stronger net sales and profits for Cal-Maine.

Since the peak in the fall of 2015, Cal-Maine’s stock price has been under pressure as hen egg laying production ramped back up, inventories peaked and egg prices plummeted. This translated to a 43-percent stock price decline from Cal-Maine’s October 2015 peak at $61 to the August 2017 low-point above just above $34.

In the spring of 2017, analysts were calling for Cal-Maine’s stock price to be fairly valued in the low $30s to even below the $30 per share mark. This was expressed by both Goldman and Cleveland Research. The most important variable for Cal-Maine’s stock price continues to be egg price movements. The challenge has been as to the predictability of where prices may be headed.

The Trade……..

** OPTION TRADE: Buy the CALM JAN 19 2018 40.000 PUT at approximately $0.30.

The Report………

Cal-Maine Foods, Inc. reported that its net loss for the second quarter of fiscal 2018 widened to $26.1 million or $0.54 per share, from $23.0 million, or $0.48 per share, for the second quarter of fiscal 2017. Results for the second quarter of fiscal 2018 include a charge of $52.8 million, or $1.09 per share, after tax, related to the settlement of previously disclosed antitrust claims that several large direct action purchasers had asserted against the Company.

Excluding this item, net income for the second quarter of fiscal 2018 was $26.6 million, or $0.55 per share. Analysts polled by Thomson Reuters expected the company to report earnings of $0.74 per share for the quarter. Analysts' estimates typically exclude special items.

CEO Dolph Baker was upbeat about the results, noting that the settlement "eliminates the substantial risk, uncertainty, expense, and distraction" of the litigation, and better conditions in the egg market reflect stronger demand from retail and institutional customers alike.

Still, investors have been reluctant to get excited about Cal-Maine's prospects until they actually show up in financial statements, and it might take a while longer for the stock to get traction even if market conditions keep improving.

End Result……..

Shares of Cal-Maine Foods fell 7% after the company reported its fiscal second-quarter results early Friday morning.

At the time of the recommendation the stock was trading at $43.50.

On Friday the stock hit a low of $39.70, traded on unusually high volume, as the stock lost 6.85% to close the day at $40.80. On the day, Cal-Maine Foods Inc. saw 1.31 million shares traded hands on 10,096 trades. Considering that the stock averages only a daily volume of 325,726 shares a day over the last month, this represents a pretty significant bump in volume over the norm.

The Profit……..

So, for those traders who managed to execute this trade recommended by Stock Options Made Easy; a nice tidy potential profit of 257% within a couple of days.



As you would have by now realized, many of our trades are based on earnings predictions. This is not to say all trades recommended to members follow this pattern, but during earnings season this strategy has been very profitable.

Our approach is to predict whether a company will beat or miss estimates, whether the stock will appreciate or depreciate as a result and what strategies investors and traders can use. This type of prediction is based on thorough investigation and fundamentally based research, and the results have been very exceptional.

Our proven track record says it all!!

Members of Stock Options Made Easy are provided with an extensive reason as to which direction a stock will move after earnings, followed up by a recommended options trade.

What To Do Now…….

If you interested in being part of this profitable action just click here……

Best of Trading,
Ian Harvey
Director of Stock Options Made Easy


”Success is simple. Do what's right, the right way, at the right time.”

Option Tip for your Success!
Options traders are not successful because they win.
Options traders win because they are successful.

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