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Tiffany (TIF) Before January Sales Report - Options Strategy

|Includes: Tiffany & Co. (TIF)
Ahead of Tuesday's January sales report that is expected to be positive here is a simple low risk options strategy.

Friday, Jan. 6: Sell OTM January put spread.  For example Jan. 60/55.  With IV on puts in the 40s, and 16 days to expiration this trade can generate 80%+ return on margin if expired worthless at expiration.

Monday. Jan.9.  With only 13 days to expiration left there are two action plans:
        1. Shares are higher  - close the put spread at a profit.
         2. Shares are lower - use credit from Friday's put spread to buy Jan. calls and subsequently manage positions based on the Tuesday's sales results.