by Ian Harvey
August 31, 2017
Chico's FAS, Inc. (NYSE:CHS)
Here is an overview of Chico's winning options trade after reporting earnings. This options trade was recommended on Tuesday, August 29, 2017 for “Cut-to-the-Chase” members, with the company reporting on Wednesday, August 30, before the market opened; producing great potential profits within a 24 hour period of executing the trade.
The Recommendation……from “Cut-to-the-Chase” Recommendations - Week Beginning Monday, August 28, 2017”
The company is expected to post its results before the market open, with the consensus calling for earnings of $0.21 per share. During the same period last year the company had earnings of $0.25.
Chico’s Fas has struggled for the last year, and with earnings forecast to fall year over year from 25 cents per share to 21 cents, it will be hard for Wall Street to turn bullish any time soon. It posted a negative earnings surprise of 10.3% in the previous quarter.
** OPTION TRADE: Buy the CHS SEPT 15 2017 8.000 PUT at approximately $0.40.
Chico's FAS Inc. on Wednesday reported
fiscal second-quarter net income of $22.7 million.
On a per-share basis, the Fort Myers,
Florida-based company said it had profit of 18 cents.
The results fell short of Wall Street
expectations. The average estimate of analysts was for earnings of 21 cents per
The clothing chain posted revenue of
$578.6 million in the period, also missing Street forecasts, with analysts expecting
Sales in stores open at least a year — a
key metric of a retailer's health — declined 8.4 percent during the quarter.
Chico's shares have dropped 46 percent since the beginning of the year. The stock has dropped 34 percent in the last 12 months.
In premarket trading, the stock slid 12 percent to $6.96.
Starting the day trading at $7.07, Chico's FAS Inc. hit a low of $6.96, climbed back to $7.79, before closing the day at $7.52, down 3.96%.
So, for members of Stock Options Made Easy; a nice tidy potential profit of 162.5% within a 24 hour period.
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.
Even negative trades are well catered for, as an example, the trade mentioned in “Best Buy Earnings Report”, where a negative return results, based on the presumption that all trades are fairly equal, then this trade on CHS will cover that loss, and still provide a potential profit of 62.5%.
However, if you have been following our newsletters of the past several weeks of “Earnings Predictions”, then you will see that profits are quite weighted to the positive.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……