American Eagle Outfitters Inc
Option Trade Blog

Chart 1: American Eagle Outfitters Yearly Chart

Chart 2: Quarterly Chart

Charts courtesy of StockCharts.com

Title: American Eagle Outfitters Inc Option Trade Blog

Blog Date: 20 Nov 06

Business Description: American Eagle Outfitters, Inc. (AEOS), together with its subsidiaries, operates as a retailer that designs, markets, and sells current clothing. The company’s collection includes jeans and graphic T-shirts, as well as accessories, outerwear, footwear, basics, and swimwear under American Eagle Outfitters, American Eagle, and AE brand names. As of April 5, 2006, the company operated 870 American Eagle Outfitters stores, including 799 stores in the United States and 71 stores in Canada. It also distributes its merchandise through its Web site. AEOI was founded in 1972 and is headquartered in Warrendale, Pennsylvania.

Symbol: AEOS

Option Symbol: AQUXI

Option Description: Type: Put, Expiration: Dec, Strike Price: 45

Reason for Initiation: Up-trending, up by more than 100% in 1 year, and about 50% last 3 months.

Action: Short Put (equivalent to Long Stock)

Details: Sold to open position on 13th Nov 06. Closed position on 17th Nov 06.

Result: slight +ve

Reason for Closing: Lack of strong price follow-through. 

Comments:

* Perhap to reconsider entry when a saucer base  is formed and the next break out.

* Decide to play defensive after recent run in the market.

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