I covered Campbells Soup Company Sunday night in the optionmillionaires.com week ahead live webinar. The video archive for the webinar can be found here: http://www.optionmillionaires.com/forum/showthread.php/526-The-Week-Ahead-8-25-13 In it I stated that I thought $CPB was headed for a decline and I was looking to enter the out of the money PUT options. Since then the stock has fallen almost 5%. I think it may fall even further and that tomorrows earnings report will be the reason why. The stock is up some 40% since the start of 2013. Are there that many Cream of Mushroom cans flying off the shelves this year? The stock offers a nice 2.5% dividend yield, but as rates rise that will become a moot point.
I also recorded this chart video Monday before the market opened: http://stks.co/tQ43
Here are some charts of $CPB. The stock has put in a double top. The recent volume indicates it is running out of buyers. Any selling pressure will send the stock to support at the $42 level before coming to rest in the mid $30 level.
The PUT options for September are up over 100% since I brought the stock up at Sundays week ahead webinar. I will either enter into PUTS heading into the close today, or wait until the market opens tomorrow. The stock is down almost 5% since week alone, which is a big move for a stock like $CPB. I think the stock will see further declines into weeks end and beyond. It's a bold call and one I could be wrong about. I've been right for almost 5% this week, I think there are more profits to come for those trading for downside.