Bed Bath & Beyond Inc. (NASDAQ:BBBY) Dives
But Put Options Provide
247% Potential Profit!

Put Options Were The Way To Go!

by Ian Harvey

September 22, 2017

Share

Bed Bath & Beyond Inc. (NASDAQ:BBBY)

Here is an overview of Bed Bath & Beyond Inc. (NASDAQ:BBBY) winning options put trade after reporting earnings. This options trade was recommended on Monday, September 18, 2017 in “Earnings Predictions for the Week Beginning September 18, 2017”, with the company reporting poor earnings on Tuesday, September 19; producing potential profits within a couple of days of executing the trade!

The Recommendation……from “Earnings Predictions for the Week Beginning September 18, 2017”

The Details……..

Bed Bath & Beyond Inc. (NASDAQ:BBBY) -- reports after the market's close, and the consensus earnings estimate is $0.95 per share on revenue of $3.01 billion. Investor sentiment going into the company's earnings release is only 31% expecting an earnings beat. Consensus estimates are for earnings to decline year-over-year by 14.41% with revenue increasing by 0.73%. Short interest has increased by 29.6% since the company's last earnings release while the stock has drifted lower by 4.8% from its open following the earnings release to be 21.5% below its 200 day moving average of $36.51. Overall earnings estimates have been revised lower since the company's last earnings release.

Bed Bath & Beyond has been reeling under sluggish mall traffic, which has been hurting performance for quite some time. Also, increased net direct-to-consumer shipping costs along with higher coupon and advertising costs are hurting results.

Consequently, the company has put up a dismal show for the last several quarters.

As well, management retained previously issued dismal bottom-line outlook for fiscal 2017, as it expects better visibility after the fiscal second quarter. Thus, the company continues to envision current-year earnings per share to decline in the range of low-single digits percentage to 10%. However, it continues to anticipate gross margin decline in fiscal 2017, alongside SG&A deleverage due to payroll and payroll-related expenses as well as technology expenses.

The Trade……..

** Option trade to consider: Buy the BBBY OCT 20 2017 27.500 PUT at approximately $1.50.

The Report………

Bed Bath & Beyond Inc. (NASDAQ:BBBY) shares plunged after a trading halt was lifted during Tuesday’s after-hours session as the company posted quarterly results that fell short of expectations.

The company earned $0.67 per share in its second quarter on revenue of $2.94 billion. Revenue missed the consensus analyst forecast by $70 million. While EPS was also a big miss - analysts were looking for $0.95.

Bed Bath & Beyond said numerous issues caused the big miss, including restructuring charges, Hurricane Harvey, and a new accounting standard.

The company added that it "is undertaking a number of transformational initiatives."

Shares were recently down over 15%.

End Result……..

At the time of the recommendation, Monday morning, Bed Bath & Beyond Inc. stock price was sitting at $28.64.

By the time the market opened Wednesday, the stock had dropped to a low of $22.10.

The Profit……..

So, for those traders who managed to execute this trade recommended by Stock Options Made Easy; a nice tidy potential profit of 247% within a couple of days.

ACTION TO TAKE…….

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


Share



”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.



Back to Stock Options Made Easy Home Page from Bed Bath & Beyond Inc. (NASDAQ:BBBY) Dives But Put Options Provide 247% Potential Profit!



Search Stock Options
Made Easy



Enjoy Relaxed or Fast-Paced Trading? Choose your Membership Style...

Whether you prefer to take a laid-back approach to your trading,

or to charge ahead in your options trading,

 Stock Options Made Easy Armchair Trader and Cut-to-the-Chase Trader Memberships put everything you need to succeed at your fingertips for just  $39 or $79 per month.







Subscribe to our FREE
newsletter for all the latest options news!


Enter Your Email Address

Enter Your First Name