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Free Trade of the Week: Big Lots Inc. (BIG) – Earnings Trade- Before the markets open 3/7/14

Big Lots Inc. (BIG) – Earnings Trade- Before the markets open 3/7/14

Big Lots Inc. (BIG) is scheduled to report earnings before the markets open on Friday, March 7, 2014.

This is a good stock to use for the Neutral Calendar Spread. It is not volatile, yet the options are always priced for a big move, ideal for the NCS strategy.

Last quarter, the stock moves more than usual, so this quarter the at-the-money strikes are extremely overpriced. This should be a very good trade and it priced great. 8/10.

Here is how the trade is placed:

Entered Trade

Sell -20 BIG Mar14 27.5 Call
Buy 20 BIG Apr14 27.5 Call

Requirements

Cost/Proceeds $500.00
Option Requirement $0.00
Total Requirements $500.00
Estimated Commission $60.00

Greeks / NBBO

Symbol Bid Ask IV Delta Gamma Vega Theta
BIG Mar14
27.5 Call 2.55 2.70 71.73 -1,371.10 -167.31 -42.00 101.36
BIG Apr14
27.5 Call 2.80 2.95 48.98 1,342.74 147.39 72.42 -42.16
Net -28.36 -19.92 30.42 59.20

NBBO 0.10 0.40. Try to pay 0.25 or less for this trade. At a maximum, pay 0.30. See the attachment for the profit/loss chart.

BIG NCS 3714
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One Response to Free Trade of the Week: Big Lots Inc. (BIG) – Earnings Trade- Before the markets open 3/7/14

  1. KOB says:

    The sell to close order is in at $0.45 on this trade.

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