Specialty retail is fickle.
$5Bn Market cap for specialty retailer URBN 0.00%↑ is at the top end of a five year range.
Numbers look fine, if unspectacular.
Setup is what looks good -
Price currently sits on top of the AVWAP from the November earnings related gap up. A break through that level opens up a viable possibility for a gap fill of some degree. That AVWAP, and/or the declining 5 day moving average can be used to manage risk ; while the sizable gap range provides ample cushion to book positive EV gains in the trade.
I’m taking this trade on a break below the AVWAP, and will manage accordingly with broader market conditions. Whenever I take an overnight or longer short position in a smaller name like this, I tend to grab out of the money calls for insurance purposes against event risk (an acquisition etc).