“Cut-to-the-Chase” Recommendations
- Week Beginning -
Monday, February 12, 2018

by Ian Harvey

IMPORTANT NOTE: There is no stop-loss or pre-determined sell price recommended – this is left to the discretion of the individual trader.


Option Trade - - CBS Corporation (NYSE:CBS) Calls

Thursday, February 15, 2018

** OPTION TRADE: Buy CBS MARCH 16 2018 60.000 CALL at approximately $0.60 each. Sell price is left to your own judgment.

CBS Corporation (NYSE:CBS), a mass media company, is scheduled to report its fourth quarter results today, Thursday, February 15. The Consensus Estimate for the fourth quarter is pegged at $1.15, reflecting a year-over-year increase of 3.6%. Also, analysts expect revenues of $3,714 million up from $3,518 million in the prior-year quarter. The current estimate reflects a sequential growth of 17.1%.

For the fourth quarter, CBS expects the Local Media segment's total non-political revenue to pace up to mid-single digits. At Cable Networks, scatter pricing is expected to grow in double digits against upfront pricing in Q4. In addition, the company could benefit from the growing audience of its digital platforms.

The company announced mixed results through the first three quarters of 2017, largely due to declines in advertising sales, offset by growth in affiliate and subscription fees.

Influencing Factors

It is apparent that CBS' top and bottom lines are expected to grow year over year. It is believed that the company is likely to gain from increasing demand for content, rise in retransmission rates, expansion of direct-to-consumer business, sturdy digital presence, upfront fees from traditional distribution partners and higher international content licensing fees. Also, with the launch of Showtime's streaming service; online news channel, CBSN; and over-the-top service, CBS All Access, the company has started generating incremental revenues.

CBS's sustained focus on increasing subscription-based revenues is likely to drive long-term growth as well. In the fourth quarter, analysts anticipate revenues from affiliate and subscription fees to increase by more than 15% year over year to $888 million. Furthermore, the company has an extensive library of premium content that it monetizes over multiple platforms.

Analysts and Hedge Funds Opinions

Benchmark reiterated a “buy” rating and issued a $78.00 price target on shares of CBS in a report on Tuesday, January 16th.

Several other analysts have also recently commented on the company…..

  • Royal Bank of Canada cut their price objective on shares of CBS from $77.00 to $66.00 and set an “outperform” rating on the stock in a report on Friday, November 3rd.
  • Cowen restated a “buy” rating and set a $69.00 price objective on shares of CBS in a report on Friday, October 27th.
  • Zacks Investment Research upgraded shares of CBS from a “sell” rating to a “hold” rating in a report on Monday, October 30th.
  •  ValuEngine downgraded shares of CBS from a “buy” rating to a “hold” rating in a report on Sunday, December 31st.

Nine analysts have rated the stock with a hold rating, nineteen have given a buy rating and one has assigned a strong buy rating to the stock. CBS presently has an average rating of “Buy” and a consensus target price of $70.96.

Summary

According to most analysts CBS is likely to beat earnings estimates this quarter.

CBS has a fifty-two week low of $52.75 and a fifty-two week high of $70.10. The company has a current ratio of 1.55, a quick ratio of 1.10 and a debt-to-equity ratio of 3.03. The stock has a market cap of $21,380.00, a PE ratio of 15.53, a PEG ratio of 0.81 and a beta of 1.50.


Option Trade - - Shake Shack Inc. (NYSE:SHAK) Calls

Thursday, February 15, 2018

** OPTION TRADE: Buy SHAK MARCH 16 2018 45.000 CALL at approximately $0.60 each. Sell price is left to your own judgment.

The New York–based fine casual restaurant chain Shake Shack Inc. (NYSE:SHAK), is scheduled to report fourth-quarter 2017 numbers today February 15, after the market closes. Equities analysts expect Shake Shack to announce earnings of $0.05 per share for the current quarter.

On average, analysts expect that Shake Shack will report full-year earnings of $0.52 per share for the current fiscal year, with EPS estimates ranging from $0.49 to $0.54. For the next fiscal year, analysts forecast that the business will report earnings of $0.55 per share, with EPS estimates ranging from $0.42 to $0.68.

In the quarter, it is expected that the company will post an encouraging top-line performance driven by significant growth in both licensing revenues and Shack sales.

The good news for Shake Shack investors is that the company's revenue has been on a steady upward slope since its 2015 IPO.

Last earnings saw the company report third-quarter revenue that rose 27% year over year to $94.6 million, which just beat out analyst expectations for $94.5 million. Earnings also beat estimates at $0.17 per share, with only $0.15 per share expected.

In the last six months, Shake Shack stock has rallied 20.7% significantly outperforming the industry’s 5.1% growth.

And analysts are forecasting Shake Shack to register noticeable earnings growth of 23.36% in the coming 12 months.

As well future profit margin is expected to expand along with the margins in the Hospitality industry, whilst at the same time, SHAK’s forecasted ROE and the expected ROE of the industry is roughly equal at 10.96% and 11.13% respectively.

Based on future expectations, SHAK’s profit margin will move from contraction into expansion, with annual revenue growth tipped at 19.84% and 22.72% earnings growth expected annually. This suggests future earnings growth is driven further by enhanced cost efficiency alongside revenue increases, which is enlarging the incremental amount of net income that is retained from the forecasted revenue growth.

Hopes that tax reform would benefit the restaurant space sent SHAK soaring from late November. SHAK closed the second trading session of 2018 at a two-year high above $47.

Jake Bartlett, an analyst at SunTrust Robinson Humphrey, raised his price target on the stock to $60.

In a research note, Bartlett said the tax reforms will help the broader restaurant industry, fueling same-store sales gains as consumers spend their savings eating out. The fast-food industry has been plagued by sluggish customer traffic, which has prompted intense competition on discounts and value meals.

Tax reform could help the industry break out of its price war, Bartlett said. He identified Shake Shake could benefit the most and raised his price target on the stock.

Influencing Factors

Brand equity is impressive, the product is outstanding and there remains plenty of room to expand the chain.

Increased menu prices are boosting profitability. A ramped-up store opening schedule is bringing management closer to their long-term goal of dramatically expanding their restaurant base, too.

Because of its relatively tiny store base, unit growth plays a much bigger role in Shake Shack's results than it does for established chains like McDonald's. The nine locations it added to its footprint last quarter sent revenue higher by 27%.

Shake Shack is on pace to add 25 new locations to its base for the full 2017 year, which would translate into a 40% increase. CEO Randy Garutti and his team said in early November that their initial plans call for an even more aggressive 2018, with a record 34 stores set to be opened.

There is a solidly profitable business, with average weekly sales holding steady at about $96,000 per location, which translates into $73 million of operating income per unit in 2016, up from $27 million two years prior.

The stock jumped 28% since Sept. 1, propelled by the anticipated benefits of the corporate tax cuts, an upgrade from Morgan Stanley, and enthusiasm over a strong holiday season in retail. However, that rally has only made Shake Shack shares pricier; it now trades at a P/E of 71.

The burger chain is different from most restaurant stocks though. Comparable-store sales at the fast-casual chain have declined in 2017, falling 1.9%. For a  normal growth stock, that would be cause for alarm, but Shake Shack's average unit volumes are already tops in the industry, around $5 million, meaning new stores are a more important growth driver than same-store sales, and management keeps accelerating store openings. It plans to open 32 to 35 new locations in next year, increasing its store base by more than a third.

As well short interest remains very elevated on Shake Shack stock, with the number of shorted shares rising steadily since early 2015. More than 9.6 million shares are currently sold short -- more than 10 times the security's average daily trading volume.

Considering SHAK shares have rallied more than 43% in the past three months alone, some of these bears could be feeling the pressure. This makes the equity a prime candidate for short squeeze-related tailwinds.

Analysts and Hedge Funds Opinions

Analysts at SunTrust Banks lifted their Q1 2018 earnings per share estimates for Shake Shack in a research report issued to clients and investors. SunTrust Banks analyst J. Bartlett now expects that the company will earn $0.13 per share for the quarter, up from their prior estimate of $0.12. SunTrust Banks currently has a “Buy” rating and a $50.00 target price on the stock. SunTrust Banks also issued estimates for Shake Shack’s FY2019 earnings at $0.83 EPS.

Several other analysts have also recently commented on the company…..

  • BidaskClub upgraded Shake Shack from a “hold” rating to a “buy” rating in a research report on Thursday, October 26th.
  • Morgan Stanley upgraded Shake Shack from an “underweight” rating to an “equal weight” rating and decreased their price objective for the company from $43.04 to $34.00 in a research report on Thursday, December 7th.
  • Finally, Cowen increased their price objective on Shake Shack from $36.00 to $42.00 and gave the company a “market perform” rating in a research report on Tuesday, December 19th.

Two investment analysts have rated the stock with a sell rating, seven have issued a hold rating, three have assigned a buy rating and two have issued a strong buy rating to the stock. The stock has a consensus rating of “Hold” and an average price target of $38.94.

Institutional investors that have recently made a change to their positions in the stock….

  • Fred Alger Management Inc. raised its holdings in Shake Shack by 163.8% during the second quarter. Fred Alger Management Inc. now owns 592,963 shares of the company’s stock worth $20,683,000 after purchasing an additional 368,185 shares in the last quarter.
  • Lord Abbett & CO. LLC raised its holdings in Shake Shack by 101.3% during the second quarter. Lord Abbett & CO. LLC now owns 706,704 shares of the company’s stock worth $24,650,000 after purchasing an additional 355,674 shares in the last quarter.
  • Balyasny Asset Management LLC raised its holdings in Shake Shack by 77.7% during the second quarter. Balyasny Asset Management LLC now owns 539,181 shares of the company’s stock worth $18,807,000 after purchasing an additional 235,681 shares in the last quarter.
Summary

The GOP's tax cuts should help drive earnings growth over the next year along with the new store openings. Its lofty valuation means there's still a downside risk, but Shake Shack's growth plan looks solid.

Shake Shack has a market cap of $1,480.00, a price-to-earnings ratio of 65.13, a price-to-earnings-growth ratio of 3.38 and a beta of 1.33. Shake Shack has a 52-week low of $30.12 and a 52-week high of $47.39.


Option Trade - - Cisco Systems, Inc. (NASDAQ:CSCO) Calls

Wednesday, February 14, 2018

** OPTION TRADE: Buy CSCO MARCH 16 2018 43.000 CALL at approximately $0.70 each. Sell price is left to your own judgment.

The computer networking giant Cisco Systems, Inc. (NASDAQ:CSCO) will report earnings after the market closes today, Wednesday, February 14, 2018. The consensus earnings estimate is $0.59 per share on revenue of $11.82 billion; the Earnings Whisper number is $0.60 per share; compared to the year-ago quarter of 57 cents per share on $11.58 billion in revenue. The company's guidance was for earnings of $0.58 to $0.60 per share.

Cisco hasn't missed earnings since 2014. The shares really didn't go anywhere for years but 2017 was a true breakout year. Even with the slight pullback in 2018, they are still holding most of their rally.

Overall earnings estimates have been revised higher since the company's last earnings release.

The company is still in a midst of a transformation. Cisco no longer wants to rely solely on its core routing and switching business and has made moves toward a more software-centric, subscription-based model. And it is expected that Cisco will finally guide for the next quarter and fiscal year in a way that inspires confidence that it can grow the software side of the business to offset the expected decline in hardware.

Influencing Factors

Since its last earnings report, Cisco’s shares kept rising to close at their highest level since December 2000 on Jan. 29 at $42.85. Over the past 12 months, shares have gained 29% compared with a 21% gain in the Dow Jones Industrial Average, +0.16%, a 15% gain in the S&P 500 index, +0.26% and a 24% gain in the Nasdaq Composite Index, +0.45%.

Analysts believe CSCO stock will prove a big winner from the Trump tax cut and put repatriated cash back into the company in the form of share buybacks that support the price of remaining shares. On Feb. 13, Cisco had 4.94 billion shares outstanding and a market cap of $200.7 billion.

Hopes for growth hinge on its success with a new business model, cloud software, rather than the switching hardware it is known for. Cisco has invested heavily in security, and that has become the star of its show, with growth of 10% expected while the rest of the company remains flat. The move of security from hardware to software should benefit it.

But there are also analysts bullish on its hardware, believing the company finally has a handle on selling to cloud providers with 400 Gbps Ethernet gear, four times the current 100 Gbps standard. Over time, that means less dependence on companies like AT&T Inc. for sales, and more on companies like Alphabet Inc., which is increasing its own networking footprint and building the undersea cable networks phone companies once built exclusively. Others expect gains from a new equipment upgrade cycle.

Cisco Systems is seeing favorable earnings estimate revision activity as of late, which is generally a precursor to an earnings beat. After all, analysts raising estimates right before earnings - with the most up-to-date information possible - is a pretty good indicator of some favorable trends underneath the surface for CSCO in this report.

Analysts and Hedge Funds Opinions

A brand-new analyst report that suggested Cisco is poised for a major surge on the back of an upcoming hardware upgrade cycle will help push Cisco higher.

"We believe Cisco's webscale switching wins are durable and its window for a campus switching refresh will extend through 2019," wrote Nomura Instinet's Jeffrey Kvaal in a note to clients. "Now is the time for networking juggernaut Cisco."

Nomura upgraded Cisco shares to a "buy" rating from "neutral" and raised its price target for the stock to $46 from $33. That call would represent a 16% upside to Friday's closing price.

The firm estimates that Cisco will generate full-year earnings of $2.58 per share in fiscal 2018, which is noticeably higher than our consensus estimate of $2.47 per share.

"Cisco appears well-positioned to gain share from Extreme, Juniper, and Avaya which have generally been weak in campus," Kvaal continued.

The analyst said that Cisco increased its share of the ethernet switch market to 53% from 49% in the third quarter of fiscal 2017. Kvaal thinks those gains will continue into fiscal 2019.

Also, RBC Capital Markets analyst Mitch Steves, who has an outperform rating and raised his price target to $44 from $40, said Cisco is a defensive play among tech investors and expects the company to report slightly ahead of Street expectations.

As well, Cowen analyst Paul Silverstein, who has an outperform rating and a $42 price target, expects this quarter to be a turnaround one with Cisco’s return to revenue growth, powered by deferred revenue.

Several other analysts have also recently commented on the company…..

  • BidaskClub upgraded Cisco Systems from a “buy” rating to a “strong-buy” rating in a report on Friday, January 5th.
  • Vetr upgraded Cisco Systems from a “buy” rating to a “strong-buy” rating and set a $44.13 price objective for the company in a report on Monday, February 5th.
  • ValuEngine upgraded Cisco Systems from a “hold” rating to a “buy” rating in a report on Friday, February 2nd.

Eleven equities research analysts have rated the stock with a hold rating, twenty-four have given a buy rating and two have issued a strong buy rating to the company’s stock. Cisco Systems has a consensus rating of “Buy”.

Institutional investors that have recently made a change to their positions in the stock….

  • Vanguard Group Inc. raised its position in shares of Cisco Systems by 2.2% in the 2nd quarter. Vanguard Group Inc. now owns 352,120,694 shares of the network equipment provider’s stock worth $11,021,378,000 after purchasing an additional 7,411,891 shares during the last quarter.
  • American Century Companies Inc. raised its position in shares of Cisco Systems by 54.2% in the 2nd quarter. American Century Companies Inc. now owns 14,362,422 shares of the network equipment provider’s stock worth $449,544,000 after purchasing an additional 5,049,326 shares during the last quarter.
  • Janus Henderson Group PLC raised its position in shares of Cisco Systems by 51.1% in the 2nd quarter. Janus Henderson Group PLC now owns 13,528,059 shares of the network equipment provider’s stock worth $423,475,000 after purchasing an additional 4,577,831 shares during the last quarter.
Summary

Chuck Robbins replaced the legendary John Chambers as CEO of Cisco in 2015 and his long reinvention of the company as a cloud and security provider is only now taking hold.


Option Trade - - Groupon Inc. (NASDAQ:GRPN) -- 2 CALLS & 1 PUT

Tuesday, February 13, 2018

** OPTION TRADE 1: Buy 2 GRPN FEB 16 2018 5.000 CALL at approximately $0.50 each. Sell price is left to your own judgment.

** OPTION TRADE 2: Buy 1 GRPN FEB 16 2018 5.000 PUT at approximately $0.35. Sell price is left to your own judgment.

Groupon Inc. (NASDAQ:GRPN), an online operator of local commerce marketplaces around the world that connect merchants to consumers by offering goods and services at a discount, will report fourth-quarter earnings before the market opens tomorrow, Wednesday, February 14, 2018. The consensus earnings estimate is $0.09 per share on revenue of $860.58 million; and the Earnings Whisper number is $0.12 per share. Consensus estimates are for year-over-year earnings growth of 12.50% with revenue decreasing by 7.95%.

Overall earnings estimates have been revised higher since the company's last earnings release.

Groupon is in the midst of some cross-currents that may potentially make it mispriced, despite having surged almost 60% in 2017. New CEO Rich Williams (who was the former CEO and also has experience at Amazon is only a little over 2 years on the job and still is implementing his turnaround plan. That includes streamlining the business down to its most profitable categories and geographies. For instance, Groupon has cut the countries in which it operates from 47 down to 15. This has resulted in declining revenue (-7.6% last quarter) yet increasing gross profit (+5% last quarter) and adjusted EBITDA (+48%), and GAAP breakeven. The company also has a solid net cash position of around $300 million when considering the convertible notes and other long-term liabilities.

The combo of both hard work and a bit of good luck seems to have benefited Groupon, as the company scored a huge piece of free advertising, courtesy of Tiffany Haddish.

Haddish was one of the stars of 2017 comedy hit Girls Trip, which took in $140 million at the box office with a production budget of $19 million and got an 80% audience rating on Rotten Tomatoes.

Groupon immediately pounced, making her the company's official spokeswoman, and it also featured Haddish in a Super Bowl ad that encourages people to spend money locally.

While not a guarantee of success, the endorsement of a big celebrity, if perceived as authentic, can potentially move the needle, especially for a small company. For instance, consider the impact Oprah Winfrey had on Weight Watchers International (NYSE: WTW).

Haddish's endorsement could actually make a difference -- perhaps more than the average celebrity endorsement. This is because the marketing boost is coming just as Groupon is making a meaningful change to its core product, with last year's introduction of Groupon+.

Groupon+ allows customers to seamlessly link Groupon deals to their credit card, thereby making Groupon easier to use. The feature could potentially mark a new chapter for the company, which has struggled mightily since its 2011 IPO.

Groupon+ is just being rolled out now, having reached 23 cities as of the third quarter 2017, but has been advertised significantly in only three cities, according to management. With the momentum of Haddish's Super Bowl ad, it's possible the company could accelerate its marketing efforts around Groupon+ in 2018.

As Groupon is still a relatively small company at $3 billion market cap, the combined effect of a big marketing push around a new product has the potential to see the company move forward in the year ahead.

As well, Groupon was upgraded by equities researchers at Goldman Sachs Group from a “sell” rating to a “neutral” rating in a research note issued on Wednesday, January 17th. The brokerage currently has a $5.40 price target on the coupon company’s stock. Goldman Sachs Group’s price target would indicate a potential upside of 5.06% from the stock’s previous close.

AND HERE WE GO AGAIN………..

The Reason for the Covering Options Put……..

There is a movement expectation of 15.5% of the stock price after GRPN reports earnings – the determination in which direction can, at times, be confusing as to why, as we saw in a couple of our trades last week.

And have just witnessed in yesterday’s trade – UAA – already up over 10% pre-market!

And there are several factors that may cause Groupon to turn downwards. Therefore, it may be prudent to cover all exits.

From a fundamental standpoint, the holiday quarter is Groupon's biggest in terms of sales and profits. Groupon stock is holding support right around $5 - which means a Q4 miss could send GRPN tumbling.

After all, Groupon stock traded below $3 as recently as June. Since then, however, optimism has grown toward the company's turnaround. Increased marketing, cost-cutting elsewhere and a sharper focus on the legacy Local business have led earnings to increase this year despite lower revenue.

And another factor is that the stock looks vulnerable to a bout of profit taking as the business model of social discounts continues to face significant competitive headwinds.

Groupon needs to keep the momentum going in Q4 - and guidance for 2018 will be of great importance. At roughly 10x EBITDA and ~25x free cash flow, GRPN has upside if it can convince investors it can generate consistent growth. But that's a big 'if' for a company that has lost over half a billion dollars since going public - and has seen its market capitalization decline some $10 billion from post-IPO levels.

As a result, a big move seems possible on Wednesday. Given how important the fourth quarter will be, Groupon stock easily could post that type of gain - or loss.

Conclusion

With such a large movement expected in the stock price after GRPN reports the cost of 1 PUT is easily covered if the Call trade wins out. On the other-hand, a little insurance is certainly worthwhile if the Put Trade takes the spot.

While the stock has had a run, it is only valued around one times sales right now. Given the overall turnaround, the new Groupon+ feature, and the good fortune of catching Tiffany Haddish’s rising star, Groupon could be very interesting indeed.

Groupon has a twelve month low of $2.90 and a twelve month high of $5.99. The stock has a market capitalization of $2,870.00, a PE ratio of -34.27, a P/E/G ratio of 26.42 and a beta of 1.47. The company has a current ratio of 0.86, a quick ratio of 0.86 and a debt-to-equity ratio of 0.99.


Option Trade - Under Armour Inc. (NYSE:UAA) -- 2 PUTS & 1 CALL

Monday, February 12, 2018

** OPTION TRADE 1: Buy 2 UAA FEB 16 2018 13.000 PUTS at approximately $0.85 each. Sell price is left to your own judgment.

** OPTION TRADE 2: Buy 1 UAA FEB 16 2018 14.500 CALL at approximately $0.85. Sell price is left to your own judgment.

Baltimore-based athletic apparel and accessories maker Under Armour Inc. (NYSE:UAA) is scheduled to release its fourth-quarter results before the market opens tomorrow, February 13. The consensus earnings estimate is $0.01 per share on revenue of $1.31 billion, and the Earnings Whisper number is $0.02 per share. Consensus estimates are for earnings to decline year-over-year by 95.65% with revenue increasing by 0.14%.

Overall earnings estimates have been revised lower since the company's last earnings release.

UAA was recently trading at $13.60, down $9.86 from its 12-month high and $2.20 above its 12-month low. Overall technical indicators for UAA are bearish with strong downward trend.

Analysts have an overwhelmingly negative view of the stock at this time. With 11 out of 29 analysts that cover the stock giving it a “strong sell” rating, there is a significant amount of bearish sentiment toward the company.

Even with the recent pullback in the stock, its valuation is high, with a P/E of 41.7, and analysts see earnings falling by 2.6% per annum over the next five years.

Sporting goods retailers and department stores are struggling to compete with Amazon. As a way to attract more shoppers, Under Armour management decided to shift from selling higher-margin apparel toward lower-margin footwear via aggressive promotions. But the company’s expenses, including investments in Direct-to-Consumer and R&D, are expected to pressure margins for this fiscal year and next.

The sports apparel titan's last report was a bust, with sales and profitability both shrinking because of a brutal sales environment in the core U.S. market.

CEO Kevin Plank and his team described a brutal selling environment in the U.S. market where retailer bankruptcies, weak customer traffic, and aggressive discounting sent sales down 12% even as profit margins dove. Management warned that it didn't expect these conditions to improve over the holidays, either.

 "We do not expect these conditions to improve," CEO Kevin Plank bluntly warned investors in an earnings call in late October.

Expect weak demand to drive heavy promotional activity over the holiday season, which should translate into nearly flat sales and another round of sinking gross profit margin.

According to Wells Fargo, consumer tastes have changed from the performance styles that drove the industry for years -- and which Under Armour specializes in --toward more of a fashion-forward sensibility.

As the athleisure trend swelled, causing a blending of outlooks and a dilution of identity, Under Armour, has failed to address this situation satisfactorily. That's part of the reason why Under Armour has fallen especially hard -- because teenage males, the primary purchaser of athletic shoes, is no longer dominant.

BUT The Reason for the Covering Options Call……..

There is a movement expectation of 18.7% of the stock price after UAA reports earnings – the determination in which direction can, at times, be confusing as to why, as we saw in a couple of our trades last week.

And there are several factors that may cause UAA to re-bound – although in most analysts eyes this does not seem to be the case. Therefore, it may be prudent to cover all exits.

Looking at the good news is that with shares so depressed, and so much negativity already priced into the stock, any sign of good news could lead to a sharp increase in share price. Last quarter, the company was able to top estimates on the bottom line, but sales came in weaker than expected, and the mixed results drove the stock sharply lower. Shares rebounded a little during the final month of the year, but the recent market selloff hit the stock, which is currently trading in the lower end of its 52-week range.

Under Armour is betting big on the 2018 Winter Olympics; and few companies will have a bigger presence there than Under Armour, whose logo will adorn 375 athletes from 16 countries.

It is possible there can be a payoff, since its broad coverage of athletes’ means it can continue to build on the global gains it has made.

In the third quarter of 2017, Under Armour's international revenue grew 34% on a constant currency basis and represented 22% of total revenue, with the Asia-Pacific region growing 53%, followed by Latin America at 27%, and Europe and the Middle East with 20%.

Conclusion

With such a large movement expected in the stock price after UAA reports the cost of 1 call is easily covered if the put trade wins out. On the other-hand, a little insurance is certainly worthwhile if the Call Trade takes the spot.





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