ELF Options Anybody?

ELF is very, very uncool right now. But it seems to have built a base and is consolidating around $100-110. IV is through the roof (86% per Thinkorswim). I wrote one way-OTM $80 Nov 8 put today. That’s just the other side of earnings (Nov 6).

Feels like it has a lot of coiled energy if it surprises to the upside. On the other hand, at its valuation, anything negative could rip the rug out from under it. Feels binary to me.

Any other opinions? Anybody nibbling on ELF?

Peter

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It could be building a cup, just a little early to tell. I would like to see the RS line starting to go up and the right side forming before buying.

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It’s going to take at least five bars to confirm that pattern, no?

That takes us out past earnings…

The Nov8 107 put/call pair straddle is pricing over $20. That’s roughly 20 percent implied movement post earnings. The casino is taking bids and ppl are smashing the over. Any pattern we’re seeing emerge now is likely to be overcome one way or the other by earnings.

I’m wondering the best way to play this. I own a small ELF position but consider the stock expensive due to slowing growth. Plus it’s really out of favor, selling off, and trying to consolidate. I’m not sure about taking on a larger long-term position bc of that.

On the other hand, the company itself seems just fine. It’s just an overpriced stock that needs to regain favor. Smells like an options opportunity; especially with IV so high. Trying to figure out the best way to play it…

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I agree I like Elf and have it on my watch list but it is binary. I do think it will pop on earnings but I don’t want to chance it personally. I sold out of it when it went under the 50sma but it could jump on earnings and start going up. Since I am not in it I will just wait and watch.

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