L Brands, Inc. (LB) is a women’s intimate, beauty and personal care products retailer. The stock is currently trading at the upper end of its 52 week range of $55.33-$95.78 around $88.63. The stock has been trading fairly strong this year with shares appreciating around 2.4% year to date. LB is scheduled to report earnings after the bell today, and the stock appears to have gained some ground ahead of the release. LB is higher on the session by around 0.44% or $0.38.
Over the past 8 quarters LB has sold off on earnings day 4 times and ripped up 4 times with an average move of 1.50%. LB also appears very weak on a chart over the past 2 months and going into the release after the bell today. The stock is trading at the bottom of the Ichimoku Cloud on the daily bar, and appears as if it could break to the downside in today’s session. With earnings coming up and the stock looking bearish on the chart it is hard to justify anything but a bearish trade in LB.
The options market is currently implying a move of around $4.60 or 5.2% in LB by this Friday’s close giving us a downside target around $84.03.L Brands, Inc. (LB) is a women’s intimate, beauty and personal care products retailer. The stock is currently trading at the upper end of its 52 week range of $55.33-$95.78 around $88.63. The stock has been trading fairly strong this year with shares appreciating around 2.4% year to date. LB is scheduled to report earnings after the bell today, and the stock appears to have gained some ground ahead of the release. LB is higher on the session by around 0.44% or $0.38.
Over the past 8 quarters LB has sold off on earnings day 4 times and ripped up 4 times with an average move of 1.50%. LB also appears very weak on a chart over the past 2 months and going into the release after the bell today. The stock is trading at the bottom of the Ichimoku Cloud on the daily bar, and appears as if it could break to the downside in today’s session. With earnings coming up and the stock looking bearish on the chart it is hard to justify anything but a bearish trade in LB.
The options market is currently implying a move of around $4.60 or 5.2% in LB by this Friday’s close giving us a downside target around $84.03.
Regards,
Andrew Keene
President/Founder
KeeneOnTheMarket.com
