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 back up to the 50 day moving average (yellow line), which also coincided with the 61.8% Fibonacci retracement level.  The stock has slowly worked its way lower since and most recently is attempting to slip out of a bearish wedge.  Our downside targets remain near the 200 day movng average (red line).

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