JCPenney (JCP) Q3 2019 Upcoming Earnings: What to Expect?

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The upcoming earnings release for Jcpenney (JCP) is one of the most pivot moments in the company's longstanding history. New CEO Jill Soltau took over as Chief Executive Officer nearly 1 year ago so we have a chance to see what changes she has made.

The stock is up 100% from its 52 week low of 55 cents in August but what will the Q3 2019 earnings release reveal?

My guess is it's a boom or bust earning call. The biggest problem with JCPenney was that they didn't care about their core target market: women shopping for their families. It looks like they are finally listening and have made changes to their stores to reflect customer demand.

A newly designed store launched recently in Hurst, Texas with a more modern look and feel. These are the types of changes that must be made to keep their core market in the stores.

As a longtime JCPenney shopper, I truly believe the company can turn things around and own shares long. I also think there is a good opportunity for options traders to profit from the upcoming earnings release.

I bought some 12/20 calls $1.50 strike in case the stock goes higher after earnings. Of course, there is some downside risk. You can open a straddle position by buying some calls and puts at the same strike price to profit from the volatility.

Either way, I expect JcPenney to be a boom or bust after the earnings release. What do you think?

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