Comments on: A Wild Trade on Buffalo Wild Wings (BWLD)

By: cloud computing marketing

cloud computing marketing — Fri, 11 Nov 2011 00:12:57 +0000

Whats up! I just would like to give an enormous thumbs up for the great info you’ve here on this post. I shall be coming back to your weblog soon.

By: Shaun

Shaun — Sat, 02 May 2009 19:38:50 +0000

It sounds good, but still I don’t like the idea of selling naked calls, they can lead to large losses if the stock gaps up again.

Have you ever thought of turning it into a bear call spread by say buying the $50 call to reduce the upside risk?

By: Zachary Scheidt

Zachary Scheidt — Wed, 29 Apr 2009 18:07:44 +0000

As a follow up, Wednesday mid-day after the earnings announcement,

- The stock is off $2.50 giving a short position profits
- The calls are now $0.60 by $0.65 yielding a profit on the sale
- The puts are actually off a bit at $1.95 by $2.10 due to lower expected volatility now that earnings are complete.

Although not a given, this kind of trade often yields great short-term profits with decreased risk.