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|Includes: Travelzoo (TZOO)

I am short TZOO into the print tomorrow morning. I was very positive on the stock, and I am still positive long term but after revisiting my model I think there will be margin compression in the quarter because of broadcasting expenses, increased sales expenses due to local deals. I am confident that local deals will not be able to produce more than 10mm of net revenues and realistically probably 9mm of net reveneus. I expect TZOO to beat their revenue estimate of 40mm and be relatively in line on EPS. I do not think that the market will be impressed with this due to the 15% run this week alone, sell 105s 100s and 95 calls, delta hedge using equity if you need.