Toll Brothers Inc (TOL)

[Cast Iron]

For those momentum earnings players out there..

Toll reports tomorrow. Its last earning report in May, prior to the earnings , the 3 days before each day it closed higher than it opened. .. Followed by a gap up after earning report. and then the next days a fallingof the pps

Now if you look at the last three days of TOLL, you will see it closed lower than the open.

Hmmmm. So if you believe in trends or any other possible scenarios , you could say that a wise trade would be to buy PUT today. BUT.. it may be smarter to place a straddle

The Sept 16 PUT Option, the 15 strike price is at 0.80 and the 14 strike price at 0.50

The Sept 16 CALL Option , the 15 Strike price is also at 0.80

Disclosure : I own a straddle option with the a slight emphasis on the PUT side

Please Note : These are my opinions.. You need to make your own decisions