HAIN – The Hain Celestial Group, Inc.

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HAIN – The Hain Celestial Group, Inc.
Trade idea: Buy to open the September 15th 39x/37x vertical put spread currently trading at about $0.50
Targets: $37 – $37.25

HAIN reported earnings last week which topped estimates and initially sent the stock higher by nearly 6% before it reversed to close down 1.4%. JPMorgan chimed in on the report and said they are somewhat skeptical on the company’s guidance. With the reversal lower after earnings, it broke through the previous week’s lows after breaking through the highs as well. Because of the sharp reversal and weak close just off the lows for the week, price action remains bearish and continues to signal further downside in the near term.

With confirmation below last week’s lows of $39.14 this week, it will signal further downside to the next key support level at $37 – $37.25 within the next 1-2 weeks. It could test it by the end of this week, although keep in mind this week is a shortened 4 day trading week.

The trade idea: buy to open the September 15th 39x/37x vertical put spread currently trading at about $0.50 only if there is confirmation below $39.14 this week.

HAIN

LOW – Lowe’s Companies, Inc.

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LOW – Lowe’s Companies, Inc.
Trade idea: Buy to open the July 21st 75x puts currently trading at about $0.85
Targets: $74.75 – $75

LOW reported earnings last week and unlike its peer Home Depot (HD), the company missed estimates sending the stock lower by nearly 5%. Although it likely won’t have an impact on the stock, the company does have an upcoming shareholder meeting this Friday, June 2nd, at 10:00 AM EST.

From a technical perspective the stock failed to show any continuation last week after nearly filling the gap from its earnings miss on a bounce. It in fact continued lower from that bounce to new lows for the month today. Now going into June, monthly price action is very bearish and signaling further downside next month. With confirmation below $78.10 in June the next key support level to watch will be at $74.75 – $75.

The trade idea: Buy to open the July 21st 75x puts currently trading at about $0.85 only if there is confirmation below $78.10 next month.

LOW

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