JCP reports earnings before the bell tomorrow and the stock will likely make a big move. Macy’s reported earlier this week and the stock busted 3% higher to open the day. Are we going to get a similar move from JCP? Or is the stock going to plunge below $20? Below is my chart on JCP and my quick take on it.
In a little over 3 months the stock has fallen almost 50%, could we be looking at further declines post earnings? I’ll let my option purchase do the talking – I bought calls on JCP during Wednesdays session the $22 Aug18 Strike for $1.09, they closed today at $1.71. Am I going to regret holding them through earnings? The good part about going out to next week, is I have 6 more days left. If JCP trades flat or only modestly higher I have time for my options to gain more value next week.
If JCP can break over $23.40 we are looking at a move back to $28.20 and then $30. A good earnings report will make this move possible over the next few weeks. That is what I see with JCP. A break of resistance at $23.40 and a powerful rally to $30.00.
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