JCG ( J. CREW GROUP, Inc.)
1. Bias: BULLISH
2. Short interest 17%
3. From Yahoo Finance
PRICE TARGET SUMMARY
| Mean Target: | 45.00 |
| Median Target: | 46.00 |
| High Target: | 56.00 |
| Low Target: | 21.00 |
| No. of Brokers: | 17 |
4. Odds/Probabilities
No. of earnings : 13
Earnings with less than 5% move: 5 (38%)
Earnings with 5-10% move: 3 (14%)
Earnings with > 10% move: 5 (38%)
5. What are Gurus and Insiders doing with JCG?
http://www.gurufocus.com/StockBuy.php?symbol=jcg
6. STRATEGY: Dec 40/45 call spread. May close the position just before earnings if JCG rallies 5% into earnings
JCG has a gap at 42.50 from Nov 18th. If there is no big gap down in markets on Mon, I will probably buy some calls at 40.00-40.50 area and unload them Tuesday evening (hopefully at 42.50) before earnings. I have a feeling it may drop after earnings because it also has a gap at 37.74 from Oct 21st. On the other hand, if the market gaps down huge on Mon, I will wait to see if it fills the gap at 37.74 prior to earnings, in which case I may enter calls at 37.50-38.00 area and hold through the earnings hoping for the gap fill at 42.50. If the earnings and guidance are good, a short squeeze can propel it to 45 (resistance and 1st target) and if it breaks above 45, it has no resistance until 49-50
THIS STRATEGY IS SUBJECT TO CHANGE. PLEASE CHECK BACK ON THE DAY OF EARNINGS TO KNOW MY STRATEGY/POSITION
