Short $DG atm Put Spread

Released Earnings: 12/3 Pre-Market

Type: Post-Earnings

Exit: 12/8

PA ≈ 2%

Why? Over the last 11 quarters, during the 3 days to earnings, $DG has seen a positive move 73% of the time with an average return of 1.1%. The short atm put spread provides great exposure to this as it has worked 80% of time (excluding the March report during the Covid-19 crash), with an average return of +14%.

Long $PLAB atm Call

Expected Earnings: 12/9 Pre-Market

Type: Pre-Earnings

Exit: 12/8

PA ≈ 1%

Why? Over the last 12 quarters, during the week prior to earnings, $PLAB has seen a positive move 83% of the time with an average return of +2.3%. The atm Call provides great exposure to this as well as likely run-up in IV.

Long $KIRK Stock

Released Earnings: 12/3 Post-Market

Type: Post-Earnings

Exit: 12/17

PA ≈ 10%

Stop Loss = 5%

Why? Over the last 11 quarters, during the two weeks following to earnings, $KIRK has seen a positive move 73% of the time with an average return of +10.1%. $KIRK just released a very strong earnings report, with the stock trading as high as +25% today and has a 54% strength technical buy signal as well as 23% strength bullish options flow signal.

Long $ZUMZ Stock

Expected Earnings: Today After Hours

Type: Thru-Earnings

Exit: Tomorrow

PA ≈ 8%

Why? Over the last 12 quarters, $ZUMZ has seen a positive earnings opening gap 67% of the time (100% of the time for the last 6 quarters) with an average return of +7.8%. $ZUMZ currently has a 57% strength technical buy signal and a 40% strength increasing bullishness options flow signal. $ZUMZ also trades currently at an 8% discount to its average street price target. According to Estimize, Wall Street EPS and Revenue estimates are currently understated by 13% and 4% respectively.

all option expirations are the nearest expiry date following the recommended exit date