ANF OPTIONS EARNINGS PLAYI found another possible play in addition to COST and that is in ANF, which announces on Tuesday before market open.
The current implied volatility rank is 76, and its implied volatility is 97, so it would meet my general high implied volatility/high implied volatility rank standards for a premium selling play.
Given the price of the underlying, I would probably go short strangle (you won't get squat if you go iron condor on a sub-$30 underlying, usually):
March 11th 24/33
Probability of Profit: 74%
Max Profit: $105/contract
Buying Power Effect: Undefined
... but I'll probably look at tweaking this on Monday, depending upon what happens with price during the session.
ANF trade ideas
ANF repeating pattern of touching support and then gap acrossANF has a recent history of bouncing off support and then jumping across to the other side with a big gap. In addition, this stock has formed an inverse Head and Shoulders pattern which has been confirmed by crossing the neckline. The normal target would be around $32, but with horizontal resistance and trend line resistance, I don't think it will make it up that high. My target is $30.98.
I recommend buying 1/2 a position now, and saving the other half in case the stock comes back and tests the support line around $23.71. If so, then buy the second 1/2 and wait for the stock to hit the target. My short is placed at $22.48.
Good luck!
ANF - Price hitting top of downward channelANF has been experiencing a significant downward trend since early September. Each time price has hit the top of the downward channel, price has dropped, continuing the downward trend. Price tends to continue in a trend / channel.
Pros:
1. Price is in a daily bollinger band squeeze
2. OBV continues on a downward slope (often an indication of the direction of the squeeze)
3. Weekly chart shows daily consolidation as a bear flag
4. Price passed through long term support @29.21 and retraced back. This is in the same area of the downward trend.
5. Overall market is showing a lot of weakness right now which will help put pressure on price.
Cons
1. Oscillators showing divergence (MACD& Stochastic)
2. Price has not fallen as fast as it has in the past when top of channel was touched
3. Has fallen $16.56, or 37%, over the last 4 months. Volume has increased recently without significant price spikes. This can indicate institutions are seeing this as a value stock and price has bottomed out.
Abercrombie & Fitch Is The Gem Inside Retail A majority of earnings from retailers have been horrid this quarter. Whether it is Lululemon Athletica inc. (NASDAQ:LULU), Sears Holdings Corp (NASDAQ:SHLD) or Elizabeth Arden, Inc. (NASDAQ:RDEN), there has not been many bright spots. One stock that gave Wall Street a surprise was Abercrombie & Fitch Co. (NYSE:ANF). After reporting, the stock surged from $33.21 to a high of $38.15. As the markets have collapsed in 2014, ANF has dropped sharply. This gives us an opportunity to buy a retailer who is actually performing for a great price. This looks solid at its current price of $32.52, -0.64 (-1.93%).
Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com
My opinion on ANF, which you can play in different stylesI see this stock as a choice. It can be both sides because this company is set to fail at the end for me as it is fashion. I see this company as a luxury simulation which doesn't persist.
I would probably take a bet if i had bought it at the highest low price but now i see it as very risky. Buy if SAR touches the candle.