Campbells Soup Company $CPB Could See A Sharp Move Lower Post Earnings Tomorrow Morning


I covered Campbells Soup Company Sunday night in the week ahead live webinar. The video archive for the webinar can be found here:   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:

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.

Known to most as Uranium Pinto Beans, Jason has more than 15 years under his belt of trading stocks, options and currencies. His expertise primarily lies in chart analysis, and he has a strong eye for undervalued stock. Because he’s got the ability to identify great risk/reward trades he usually enjoys taking the path less traveled and reaping the benefits from the adventure.

He is a co-founder of Option Millionaires, and he is best known for his weekly webinars with Scott, as well as his high level training webinars and charts found in the forums.

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