Fossil Reports: Potential for a 20% Move in a Few Hours - But Which Way?
Before I drill down on Fossil… a comment about the broad market. Last week, we all witnessed one of the fastest 10% corrections ever recorded. The stock market bounced today (The Dow was up 1.7%, S&P 500 1.39%, and Nasdaq 1.56%) but the correction is still in force. I expect more rollercoaster until it settles… so hang on and enjoy the ride.
Today – it’s the Jurassic Park E-ticket adventure.
Investors need to pay close attention to the stock based on moves in the options market lately. That is because the Feb 2, 2018 $10.00 Call had some of the highest implied volatility of all equity options today. Oh but that’s right we are NOT investors. We’re traders. We only care about today’s move and getting the direction right – though we do need to pay attention to the details. (Oftentimes, options traders look for options with high levels of implied volatility to sell their premiums. This is a strategy many seasoned traders use because it captures decay)
What do the Analysts Think?
Clearly, options traders are pricing in a big move for Fossil Group shares, but what is the fundamental picture for the company? Currently, Fossil Group is a Zacks Rank #2 (Buy) in the Retail – Apparel and Shoes industry that ranks in the Top 29% of the Zacks Industry Rank. Yawn… who cares right
Given the way analysts feel about Fossil Group right now, this huge implied volatility could mean there’s a trade developing. A big one. We think so too and spent some extra time dipping this one into our magic sauce to dial it in.
StockJumpers looks for the greatest delta potential on the moves as possible so we can trade within those Jump Zones… and as long we get the direction right.. make huge profits.
FOSL will be posting its FQ4-17 quarterly earnings results today at close. [FOSL] is expected to post earnings of $.39 per share on revenue of $890 Million. In the last quarter, the company reported $-.03 earnings per share BEATING the analysts’ consensus estimate of $-.14 The stock is currently trading at $8 + per share.
NOTE Before last quarters beat – they missed in the previous 3 quarters.
Here is a quick look at their 12 month chart which is trading this morning at 8.40/share
Here is how we are trading this Jumper today….