Specialty Retailer Bed Bath & Beyond got whacked this morning after lowering guidance.
By Paul Price of Market Shadows
BBBY is a great company based on their long-term performance. It’s been a true wealth creator for patient shareholders.
Market Shadows takes the view that today’s plunge is an overreaction.
We sold 1 contract of the Jan. 2016, $70 put @ $9.50 and 1 contract of the Jan. 2016, $75 put @ $12.15 per share. Our ‘If Put’ prices are $60.50 and $62.85 respectively. Those are levels we would feel fine with, if forced to buy shares later between now and expiration date in 2016.
These trades will be reflected in our Virtual Put Writing Portfolio. See full details of all closed-out and open options positions by clicking here.
Market Shadows purchased BBBY shares for our Virtual Value Portfolio in late 2012.
On December 24, 2013 we sold BBBY @ $76.75 (for a 37.8% profit). Both the buy and the sell decisions were based on BBBY’s valuation at those moments in time. That has been proven to be a great way to make money in the market.
See all our previously closed out equity trades and open positions by clicking here.
