MU/Soma, Batman - Well, at $36, the 2021 $33 puts can be sold for $6.10 so say $3,050 for 5 short and then you can buy 10 of the 2021 $25 ($16)/38 ($9.50) bull call spreads for $6.50 ($6,500) and that's net $3,450 on the $13,000 spreads that's pretty much in the money. It's conservative but still pays $9,550 (276%) at $38.
IMAX/Jabob - I don't know what people expect from these guys.
Imax (IMAX) came out with quarterly earnings of $0.14 per share, beating the Zacks Consensus Estimate of $0.11 per share. This compares to earnings of $0.08 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 27.27%. A quarter ago, it was expected that this entertainment technology company would post earnings of $0.25 per share when it actually produced earnings of $0.30, delivering a surprise of 20%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
Imax, which belongs to the Zacks Film and Television Production and Distribution industry, posted revenues of $82.11 million for the quarter ended September 2018, surpassing the Zacks Consensus Estimate by 2.30%. This compares to year-ago revenues of $98.80 million. The company has topped consensus revenue estimates three times over the last four quarters.
Q4 is their big Q and they are on track to hit 0.95 for the year, which doesn't make them special at $20.50 but they are a solid growth company that tends to stay in the long-term channel, which makes them fun to play. We got more aggressive last week, hoping earnings would get them higher but our base trade is 30 2021 $15 calls we just bought for $9 (now $7.50) and 10 short 2020 $22 puts we sold for $2.85 (now $3.30) and I have no problem waiting for them to move back to the top of the range before we cover.
