Commentary: Odd play but turned out OK in the end. We had this one as a beat – (with a positive market reaction) which is did on both the top and the bottom line and the forward guide was in line… (The estimated EPS was for .24 and they did .37 which is a screaming beat.) Price action on that news should have soared but didn’t. It popped up 4% initially and then went down about 10%. In the trade room we went in for Trade #2 at 20.7 with a profit target of 24 – which it hit nicely in the morning. Technically this was a loser per our trading rules tracking performance – but it turned into a winner with trade #2 and because the news was so good, it was a no brainer to go back in. So why did it drop 10% before climbing? Who knows – perhaps on fears of Amazon or other competitors.
Jump Zone Profit: Trade #1 (-11) Trade #2 (+17%)