Sell to close the January 20, 2017 put on BIG with a strike price of $42.5 at 24c or higher. Symbol (BIG170120P42.5)

Big Lots reported 3c for the third quarter, 4c better than the one penny loss expected and raised annual guidance by that amount. Revenue, however, missed estimates with comp sales coming in at the low end of expectations.

 While I don’t see any reason for the stock to move much higher in the near term, a lack of news events to spur it lower before expiration requires that I close the trade out.

My premise that food sales would drop was correct with food sales declining but higher furniture sales fueled by easy credit saved the day.  

My model shows the company running into resistance in the next few quarters due to the bulk of its growth being fueled by its Easy Leasing and store credit cards. However it is unlikely the company will give a sales update before the end of the quarter.