"Time to make the donuts" DNKN $94 price target earnings 10/29

17 de out. de 2020

Remember that hilarious "time to make the donuts" commercial from 1984 with Fred the baker making donuts around the clock with little or no sleep? No? Well, then you're just a spring chicken, haha. I was 7 years old at the time. In true fashion, DNKN earnings report on 10/29 is set for 6am. I guess that will be the "time to make the donuts", lol. Q3 consensus is EPS=.81 , revenue=338.87B. Average analysts target is -6.3%. (credit: earningswhispers.com) I'm taking a contrarian forecast on DNKN and expecting a slight earnings beat, pushing my target price to $94 on 10/29. A possible approach to capture this price action would be to play a 11/20 85/95 call vertical if/when DNKN hits $85 on it's lower end of it's elliot wave. That way you avoid the -theta for a few days, lock in your delta gains going forward & reduce the price of your premium by selling the out of money strike near the $94 target. Since nothing is 100% predictable, if the share price of DNKN is high enough, the day before 6am earnings, and puts therfore are cheap enough, it wouldn't be a bad idea to grab put insurance at 3:57pm on 10/28, bc you'll be stuck for 3 1/2 hrs on 10/29 morning if it tanks. Another cool trick for put insurance, could be to get a put debit spread at 3:57pm the day before if puts are more pricey bc of implied volatility / volume, pre-earnings. That would leave you with a bullish spread strangle. lol. Since a lot can happen in the market and DNKN stock till then, I'll update more precise ideas as time elapses. Good luck and happy trading friends...

28 de out. de 2020

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