Burberry (BRBY – LSE) Eyeing Lower Levels
After announcing earnings yesterday, Burberry tumbled lower and today is regaining some footing. The theme among clothing retailers has been the same, be it Aeropostale (ARO), Ralph Lauren (RL) or Gap (GPS)…higher input costs are weighing on profit margins. The charts are broken for the medium term and there are various strategies to apply here. […]
Update On Ralph Lauren (RL) Short
After announcing earnings on May 25th, Ralph Lauren dropped 11% due to profit margin squeezes. On May 25th we sold far out of the money calls as implied volatility and hence options premium were juicy, as highlighted HERE. Two days later Citigroup upgraded RL on a valuation call and the stock rallied hard right […]