PVH Corp. (PVH) is scheduled to report earnings after the markets close on Wednesday, 5/25/16.
Last quarter, the stock had the following price movement after reporting earnings:
Mar 24, 2016
Mar 23, 2016
(PVH) has been a consistent winner over the years using a Neutral Calendar Spread, which I will also use here. I like this trade a lot. It has wide break-even points. If the stock only makes a marginal price move post-earnings, this trade will do extremely well, and still has plenty of room even if it moves more than expected. I am giving this trade a 9.5/10. Here is how the trade is placed:
Sell -15 PVH Jun16 90 Call
Buy 15 PVH Jul16 90 Call
NBBO 0.50 – 1.10. Try to pay 0.80 or less for this trade. At a maximum, pay up to 0.90. See the attachment for the profit/loss chart.
I will post the price to close this trade out tomorrow morning, right before the opening bell.
Update 1: 9:25 am EST on 5/26/16: I am placing the price to close this trade out (net credit) at $1.60. I will update any changes to this here, as needed.
Update 2: 3:20 pm EST on 5/26/16: I am increasing the price to close this trade out (net credit) to 1.70.
Update 3: 1:05 pm EST on 5/27/16: Current price to close this trade out now at $1.60.