Trade Alert: A 21.5% Gain in Mattel

This morning, the second half of our February Mattel put option was stopped out for a 10% loss.

That means we’re officially out of this position.

As you might remember, last week we closed the first half of the trade for a 53% gain in just one week. After that, we placed a stop-loss order to protect a 10% gain on our remaining half. That way, we could safeguard our returns while giving Mattel’s post-earnings downtrend time to play out further.

The stock rallied soon after, though, causing our stops to trigger today. Because the option gapped lower on the open, we took a 10% loss.

So overall, we’re walking away with an average gain of 21.5% in less than two weeks.

If your orders haven’t been filled yet, go ahead and exit the position at the market since we’ll no longer be following it. Chances are you will get out with a better gain since the options have bounced back a bit.

As always, I’d like to know how this trade went for you. This is still the beta test, after all, and even though we have a strong win rate of 66%, I still want to get feedback from you so we can continue perfecting the service before we launch it.

So I’d greatly appreciate it if you let me know about your gain and the trading process by emailing me at

Looking ahead, we have about 17 companies set to report earnings this week, so things could get busy. Remember to keep an eye on your inbox.

At the very least, we have one trade that’ll be ready to initiate soon. On Wednesday, we’ll enter a position in United Rentals based on the earnings it reported two weeks ago. But more about that on Wednesday.

Until next time, good trading…

Jeff Opdyke
Editor, Earnings Drift Alert