It occurred to me today that one of the themes of missed expectations and earnings selloffs (today's headline is ZYNGA's nearly 50% swoon) is that in a tight economy, a tepid recovery, investors are weary of business ideas that are too hard to figure out, like Groupon's or Zynga's. 

In IPO after IPO it would seem the insiders had the last laugh, with the public getting made a fool of as they enter a pyramid scheme right before it folds.  

Well what about a company that sells high-quality products at a high markup, inspires brand loyalty among its customers, and is consistently profitable, while showing strong growth both domestically and internationally?  How about Coach?  Its shares have been humbled nicely in the last few months, and they report earnings Tuesday.

Of course in this market, earnings plays are very speculative, and I'm not going to blow smoke up your ass - this is definitely speculative.  But I think it's pretty easy to imagine this stock moving up to the 66.50 area which would net a very nice gain in calls.

I've initiated a call position today, purchasing $60 strike August calls for 2.60.  Soon you'll be able to follow along with these trades as I make them on Ditto Trade.  More on my service in the coming weeks.

My projection is a possible gain of 166% (implied by the 66.50 target price).