Guidewire Software Plunges Heavily!  

Profiting From A Loss!  

Guidewire Software Inc. (NYSE:GWRE) Option Puts

Provides 129% Profit

And More To Come!

by Ian Harvey

November 30, 2017

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Guidewire Software Inc. (NYSE:GWRE)

Here is an update of Guidewire Software’s winning options put trade after reporting earnings. This options trade was recommended to “Cut-to-the-Chase” & “All-Inclusive” Trader Members of Stock Options Made Easy, on Wednesday, November 29, 2017 -- in the article ““Cut-to-the-Chase” Recommendations - Week Beginning Monday, November 27, 2017”-- producing excellent profits of 129% within 24 hours of executing the trade!

The Recommendation……

…….from ““Cut-to-the-Chase” Recommendations - Week Beginning Monday, November 27, 2017”.

The Details……..

Guidewire Software Inc. (NYSE:GWRE), the insurance software provide,r is expected to report a fiscal first-quarter loss of 14 cents a share late today, Wednesday, reversing a 2-cent gain a year earlier. Revenue should advance 7% to $110.83 million. Guidewire is transitioning to a cloud-based subscription model, which depresses results in the near term.

Top and bottom line growth moved higher last quarter. Earnings were up 51%, compared to 14% in the prior report. Revenue increased from 25% to 28%.

Consensus analyst estimates call for EPS growth of -800% for the quarter, and -10% growth for the full year. Annual growth estimates were recently revised lower.

Guidewire Software shares have added about 6.1% in that time frame, outperforming the market.

But the recent positive trend is likely due for a pullback.

The Trade……..

** OPTION TRADE: Buy the GWRE DEC 15 2017 80.000 PUT at approximately $2.40.

Sell price is left to your own judgment.

The Report………

Guidewire Software Inc. on Wednesday reported a loss of $8.9 million in its fiscal first quarter.

The Foster City, California-based company reported first-quarter fiscal 2018 non-GAAP loss of 6 cents per share, outpacing the Zacks Consensus Estimate of a loss of 14 cents per share. The reported figure was, however, much lower than the year ago bottom-line figure of 2 cents per share.

The provider of software to the insurance industry posted revenue of $108.2 million in the period, also beating Street forecasts. Five analysts expected $100.8 million.

For the current quarter ending in February, Guidewire Software expects its per-share earnings to range from 17 cents to 21 cents.

The company said it expects revenue in the range of $152 million to $156 million for the fiscal second quarter. Analysts had expected revenue of $146.9 million.

Guidewire Software expects full-year earnings in the range of 82 cents to 90 cents per share, with revenue ranging from $631 million to $641 million.

The company is transforming to a subscription based model from a term license based one, which might hurt the top line in the near term. This is because term license revenues include advance payments and subscription-based revenues are a bit delayed.

End Result……..

Guidewire Software shares have climbed 56 percent since the beginning of the year.

In the final minutes of trading on Wednesday, shares hit $76.96.

At the time of the recommendation, Wednesday morning, GWRE stock price was sitting at approximately $81.22.

Thursday morning, by 10.00 a.m., trading saw the stock price hit a low of $72.39; and is likely to plunge further into the red.

The Profit……..

So, for those traders who managed to execute this trade recommended by Stock Options Made Easy; a nice tidy potential profit of 129% within 24 hours. The bid at 10.00am is $6.50; and if realized will provide a potential profit of 171%; and more is expected!

ACTION TO TAKE…….

As you would have by now realized, many of our trades are based on earnings predictions. This is not to say all trades recommended to members follow this pattern, but during earnings season this strategy has been very profitable.

Our approach is to predict whether a company will beat or miss estimates, whether the stock will appreciate or depreciate as a result and what strategies investors and traders can use. This type of prediction is based on thorough investigation and fundamentally based research, and the results have been very exceptional.

Our proven track record says it all!!

Members of Stock Options Made Easy are provided with an extensive reason as to which direction a stock will move after earnings, followed up by a recommended options trade.

What To Do Now…….

If you interested in being part of this profitable action just click here……


Best of Trading,
Ian Harvey
Director of Stock Options Made Easy


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