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Cabela’s Inc. (CAB) put options pay off big!

Today's Financial News - Posted September 15, 2009

adler80% gains on Cabela’s Inc. (NYSE:CAB) CAB 2009 Dec 19 15.00 Puts (CABXC)

by J. Christoph Amberger

Baltimore, MD — TFN: There’s a pretty good chance that TFN’s resident options guru Andrew Snyder may kill me tomorrow. I’m biding time right now as he’s flying back from a ten-day stint in Alaska.

Since I picture him gorged on salmon and moose fillet, I reckon I can outrun him for a while. At least until he gets one of his monstrous guns from his house. Then I’m buying the farm for sure. Here’s why: As I write, we’re sitting on 80% gains on Andrew’s CAB 2009 Dec 19 15.00 Put (@CABXC).

He had recommended this play on 08/14/2009 for $1.50 to readers of his options trading service, TFN Strategic Trader.

Today, they’re at $2.70 — a gain of 80%.

You may know me from Hot Stock Confidential and the TFN eNews. I’m the cautious kind. Happy with 80% in the bag… rather than holding out for 88% or 108%.

I’m looking at the stock, Cabela’s Incorporated (NYSE:CAB), and see three days of declines.

CAB announced today that JPMorgan Chase Bank, and National Association renewed its $350 million commitment “under an outstanding series of variable funding notes issued by Cabela’s Credit Card Master Note Trust. The commitment is for one year.”

Is this good news or bad? You wouldn’t know from the charts!

But Andrew was betting on a falling stock price. Hence the put options. Today alone, the stock dropped 6%. How much lower can Cabelas go — at the verge of hunting season? Hard to tell: It’s only occasionally that I have to stock up on camping gear at the place.

Andy would know. But Andy left me and Laura minding the store. And I say take your profits and run!

I’ll be right behind you.

(If you’re in the market for a classy options trading service that generates gains of 80% even when the guru’s out of town, I say give TFN Strategic Trader a quick read-over!)


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Posted by J. Christoph Amberger · Filed Under Featuring..., Options 

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