by Ian Harvey
April 30, 2018
“RESULTS for EARNINGS PREDICTIONS”
|March 26, 2018||RHT APRIL 20 2018 150.000 CALL||P.P: 200%|
|March 27, 2018||RH APRIL 20 2018 80.000 CALL||P.P: 158%|
|March 28, 2018||GME APRIL 20 2018 14.000 PUT||P.P: 65%|
|March 28, 2018||WBA APRIL 20 2018 65.000 CALL||P.P: 38%|
|March 29, 2018||STZ APRIL 20 2018 230.000 CALL||P.P: 20%|
|April 03, 2018||PLAY APRIL 20 2018 40.000 PUT||P.P: 42%|
|April 04, 2018||KMX APRIL 20 2018 60.000 PUT||P.P: 19%|
|April 04, 2018||AYI APRIL 20 2018 135.000 PUT||P.P: 247%|
|April 05, 2018||CONN APRIL 20 2018 35.000 CALL||P.P: 48%|
|April 10, 2018||MSM MAY 18 2018 90.000 PUT||P.P: 23%|
|April 11, 2018||BBBY MAY 18 2018 20.000 PUT||P.P: 205%|
|April 12, 2018||DAL MAY 18 2018 52.500 PUT||P.P: 26%|
|April 13, 2018||JPM MAY 18 2018 110.000 CALL||P.P: 69%++|
|April 13, 2018||C MAY 18 2018 70.000 CALL||P.P: 98%++|
|April 16, 2018||NFLX MAY 18 2018 320.000 CALL||P.P: 54%++|
|April 18, 2018||AXP MAY 18 2018 95.000 CALL||P.P: 270%++|
|April 20, 2018||CLF MAY 18 2018 7.000 CALL||P.P: 130%++|
|April 24, 2018||CAT MAY 18 2018 155.000 CALL||P.P: 79%|
|April 25, 2018||FB MAY 18 2018 170.000 CALL||P.P: 89%|
|April 26, 2018||MSFT MAY 18 2018 95.000 CALL||P.P: 37%|
|April 27, 2018||CVX MAY 18 2018 125.000 CALL||P.P: 103%|
Options Trades to Consider Based on Expected Earnings Reports:
Monday, April 30
Cambridge-based Akamai Technologies, Inc. (NASDAQ:AKAM), a provider of content delivery and cloud infrastructure services for the delivery of content and applications over the Internet, will report Q1 earnings after the market closes. The Consensus Estimate for earnings is pegged at 70 cents, representing a rise of 1.5% from the year-ago quarter. Analysts project revenues of roughly $654 million, up 7.4% from the year-ago quarter.
Akamai’s cloud security business is taking off, due to rising demand for cloud-infrastructure solutions, security, mobile products, and online video and adoption of cloud services on a large scale by data centers; which poses significant growth opportunities for Akamai.
And an upcoming change in privacy laws should create more business for this division.
Akamai is likely to continue witnessing high level of network traffic on its platform, which is a major tailwind for the company. Also, the company completed the Nominum acquisition in November last year. This has helped the company expand its presence among carrier and enterprise customers.
The two recently-launched products - Enterprise Threat Protector and Bot Manager Premier - are likely to attract new customers. Akamai expects revenues from the security business to exceed $1 billion within the next four to five years, driven by strong adoption of Kona Site Defender, Prolexic, Bot Manager and Web Application Protector Product offerings.
As well, expansion of the security-product portfolio will lower Akamai's dependence on media delivery solutions. Further, rapid growth in security is expected to offset loss of large customers in the CDN space.
Option trade to consider: Buy the AKAM MAY 18 2018 72.500 CALL at approximately $2.60.
Tuesday, May 01
Payment processing and point-of-sale upstart Square Inc. (NYSE:SQ), will report earnings after the market closes. The consensus earnings estimate is $0.06 per share on revenue of $623.75 million. But the Earnings Whisper number is $0.07 per share.
The company's guidance was for earnings of $0.03 to $0.05 per share on revenue of $290.00 million to $295.00 million. Consensus estimates are for year-over-year earnings growth of 300.00% with revenue increasing by 35.14%.
red-hot company builds hardware and software products that help merchants
accept payments, streamline operations, and analyze business information.
Square also offers lending services via Square Capital and HR services through
Square announced that it has agreed to buy Weebly, a website-building
service, for $365 million in a cash and stock deal. This could help Square
accelerate its growth in two key ways -- e-commerce sales volume and
Adding a website-building platform to Square's growing ecosystem could
pay off tremendously for the company, and the acquisition's price tag could end
up looking like a bargain.
is our top focus area in 2018," according to Alyssa Henry,
Square's seller lead. "Whether
they're an artist, a winemaker, or a hairdresser, with Square and Weebly
sellers will have one cohesive solution to build their business."
With 625,000 paying subscribers and little overlap with Square's current
merchant base, this creates tremendous opportunity to cross-sell Square's other
In addition to creating omnichannel solutions, one of Square's top
priorities is expanding its international footprint.
Option trade to consider: Buy the SQ MAY 18 2018 48.000 CALL at approximately $2.55.
Option trade to consider: Buy the SQ MAY 18 2018 48.000 CALL at approximately $2.55.
Wednesday, May 02
Tech heavyweight Apple Inc. (NASDAQ: AAPL) will report earnings after the market closes. The consensus earnings estimate is $2.69 per share on revenue of $61.33 billion. But the Earnings Whisper number is $2.80 per share.
The company's guidance was for earnings of $2.54 to $2.73 per share. Consensus estimates are for year-over-year earnings growth of 28.10% with revenue increasing by 15.94%.
AAPL stock has fallen 9% in just the last eight trading sessions, as fears about iPhone X sales continue to mount; with short interest increasing by 20.4% since the company's last earnings release.
As replacement cycles lengthen and lower-end products improve, iPhone sales are going to slow, and eventually, growth will turn negative.
Increasingly, some analysts and investors appear to believe that peak has arrived.
Estimates continue to come down, with Bernstein cutting its outlook on Friday. One analyst this week wrote that the Street is in “full panic mode ", as supply chain checks show weak demand for the X.
Option trade to consider: Buy the AAPL MAY 18 2018 150.000 PUT at approximately $1.20.
Thursday, May 03
The maker of electric cars Tesla Inc. (NASDAQ:TSLA) is set to report results after the market closes. The consensus estimate is for a loss of $3.44 per share on revenue of $3.14 billion; but the Earnings Whisper number is ($3.60) per share.
Consensus estimates are for earnings to decline year-over-year by 74.62% with revenue increasing by 16.46%.
Short interest has increased by 24.7% since the company's last earnings release while the stock has drifted lower by 14.3% since then.
Analysts, investors, and even rating service Moody's are convinced that Tesla will have to raise capital this year. Analyst price targets have come down steadily, and will continue to do so if Q1 disappoints at all.
Also, overall earnings estimates have been revised lower since the company's last earnings release.
It's no doubt a big quarter for Tesla - and it leads to a very real risk of a significant decline in TSLA stock.
The chart does not look particularly healthy, with an early April rally based on better production numbers already fading.
Investors are tired of missed targets and broken promises.
Option trade to consider: Buy the TSLA MAY 18 2018 285.000 PUT at approximately $12.60.Friday, May 04
The Chinese e-commerce goliath Alibaba
Group Holding Ltd (NYSE:BABA), an online and mobile commerce company, will
report before the market opens. The consensus earnings
estimate is $0.87 per share on revenue of $9.20 billion; but the Earnings
Whisper number is for $0.92 per share. Consensus estimates are for
year-over-year earnings growth of 50.00% with revenue increasing by 64.14%.
interest has decreased by 3.4% since the company's last earnings release.
Shares have fallen nearly 14% off their highs from early January. However,
the charts show that shares of Alibaba may have found bottom after retesting
support around $163 and suggests that shares could rise by 15% from its
current price around $174.75, taking the stock back over $200.
Analysts are bullish on Alibaba, as well, and are looking for shares to
climb by 26.5% to an average price target of $223. Analysts are looking for
significant growth rates out of Alibaba in the coming years, with revenue seen
growing by nearly 30% in fiscal 2020 to $70.75 billion, while earnings are seen
jumping by 28% to $8.50 per share.
Analysts are overwhelmingly bullish on the stock, with 98% of the 49 analysts covering the stock rating it a buy or outperform, and have an average price target of $223.50, nearly 28% higher than the current stock price of $174.75.
Option trade to consider: Buy the BABA MAY 18 2018 185.000 CALL at approximately $3.80.
An Important Note: That these suggestions for options trade considerations require investors/traders to use their own discretion as to when to enter or exit! As well, it is advisable to do further research and due diligence before executing your trade.
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