by Ian Harvey
March 12, 2018
“RESULTS FOR MEMBERS OF STOCK OPTIONS MADE EASY”
|February 26, 2018||CRM APRIL 20 2018 120.000 CALL||264%|
|February 26, 2018||SQ MARCH 16 2018 47.000 CALL||P.P: 240%|
|February 27, 2018||ETSY APRIL 20 2018 22.500 CALL||P.P: 462%|
|February 27, 2018||ETSY APRIL 20 2018 22.500 CALL||P.P: 462%|
|February 28, 2018||TMUS APRIL 20 2018 62.500 CALL||P.P: 179%|
|March 05, 2018||BZUN APRIL 20 2018 35.000 CALL||100% or P.P: 268%|
|March 05, 2018||MOMO MARCH 16 2018 35.000 CALL||144%|
|March 09, 2018||AMAT APRIL 20 2018 62.50 CALL||59%++|
“RESULTS for EARNINGS PREDICTIONS for LAST WEEK ”
|March 07, 2018||OKTA APRIL 20 2018 40.000 CALL||P.P: 181%|
|March 08, 2018||KR APRIL 20 2018 27.000 PUT||P.P: 211%|
|March 08, 2018||AEO APRIL 20 2018 20.000 PUT||P.P: 60%|
NOTE: P.P: – Potential Profit
Options Trades to Consider Based on Expected Earnings Reports:
Monday, March 12
Coupa Software Inc (NASDAQ:COUP) -- providing a cloud-based spend management
platform designed to connect organizations with suppliers, will report earnings
after the market closes. Coupa is expected to report an adjusted loss of 15 cents
per share; but the company is expected to post revenue growth of 28%, with
total quarterly sales reaching $48.6 million.
The company’s story seems to be coming together a year after the IPO with increasing spend, high-profile customers, and brand awareness. Coupa is a top-performer, up 46% YTD compared to the 1% growth of the S&P.
Coupa Software Inc has an analyst consensus of Strong Buy. Recently Barclays gave an Overweight rating and raised its Coupa Software price target from $38 to $47.
The company has a one-year
high of $48.85 and a one-year low of $22.50.
Expect Coupa’s momentum to continue into the Q4 report with an outperformance
Option trade to consider: Buy the COUP APRIL 20 2018 50.000 CALL at approximately $2.25.
Tuesday, March 13
Dicks Sporting Goods Inc (NYSE:DKS) -- an omni-channel sporting goods retailer offering an assortment of sports equipment, apparel, footwear and accessories in its specialty retail stores in the eastern United States, will report earnings before the market opens. The consensus earnings estimate is $1.20 per share on revenue of $2.73 billion. The Earnings Whisper number is $1.23 per share. The company's guidance was for earnings of $1.12 to $1.14 per share.
Consensus estimates are for earnings to decline year-over-year by 9.09% with revenue increasing by 9.93%. Overall earnings estimates have been revised lower since the company's last earnings release.
DKS suffered during 2017, but was able to close the year on an upward trend. And DKS has managed to rise 11.06% so far in 2018. However, the shares have been stuck in a sideways pattern for the last two months, and the company will need a positive quarterly report for the stock to break out higher. The company has struggled to grow earnings, with profits expected to fall by 3.8% during the current year, and by 7.7% next year.
Option trade to consider: Buy the DKS APRIL 20 2018 32.000
PUT at approximately $2.20.
3D Systems Corporation (NYSE:DDD) – providing three-dimensional (3D) printing solutions, will report earnings after the market closes. Analysts expect 3D Systems's EPS to be near 1 cent per share on sales of $162.48 million.
3D Systems EPS in the same period a year ago totaled 15 cents per share. Sales were $165.93 million. Analysts estimate would represent a 93.33 percent decrease in the company's earnings. Revenue would be down 2.08 percent from the same quarter last year.
Over the last 52-week period, shares are down 37.05 percent. Over the last six months, shares of 3D Systems have underperformed the industry. The stock has plunged 26.1% against the industry's positive return of 9.9%.
Analysts have adjusted their estimates lower for EPS and revenues over the past 90 days. The average rating by analysts on 3D Systems stock is a Neutral.
The company’s bleak earnings surprise history shows estimate misses by a huge margin in three of the trailing four quarters, the average negative surprise being a whopping 83.8%. Last quarter, the company reported an adjusted loss of 20 cents, lagging estimates by a massive 281.8%. The bottom line was dragged by top-line decline as well as a disproportionate rise in cost of sales.
Also, 3D Systems’ earnings estimates have moved south in the past month, indicating a bearish analyst sentiment for the stock.
Option trade to consider: Buy the DDD APRIL 20 2018 12.000 PUT at approximately $1.05.
Thursday, March 15
Ulta Beauty Inc (NASDAQ:ULTA ) – a beauty retailer, will report earnings after the market closes. The consensus earnings estimate is $2.77 per share. The company's guidance was for earnings of $2.73 to $2.78 per share. Consensus estimates are for year-over-year earnings growth of 23.66% with revenue decreasing by 36.80%.
Ulta was a Wall Street darling for most of 2016 thanks to strong comps and EPS growth, but the stock struggled last year as growth rates began to slow a bit.
A slowing cosmetics industry and industry wide discounting caused Ulta to tumble 13% in 2017 despite otherwise stellar business performance. And 2018 is not treating the company any better, with a former employee accusing the makeup giant of unflattering sales practices in a series of recent tweets.
Comparable store sales marked a slowdown from the prior quarter's 12% increase. The retailer needed a surprisingly strong contribution from its e-commerce sales channel to meet its growth target, too. Digital sales accounted for 3.7 percentage points of its 10% comps gain, compared to 3.4 percentage points in the prior quarter.
CEO Mary Dillon and her team still believe they'll reach the growth goal they set for the full year of between 10% and 11%. But if they miss that target, it's likely to be on the low side since the industry contracted over the holiday season.
Price cuts forced Ulta to reduce its profit outlook, and executives are now calling for operating margin to hold steady in 2017 as opposed to the modest increase they had initially projected.
Short interest has increased by 32.4% since the company's last earnings release.
Option trade to consider: Buy the ULTA APRIL 20 2018
200.000 PUT at approximately $8.20.
Friday, March 16
Tiffany & Co. (NYSE:TIF)
– a jeweler and specialty retailer, will report earnings before the
market opens. Analysts expect Tiffany to report $1.62
EPS. They anticipate $0.17 EPS change or 11.72 % from last quarter’s $1.45 EPS.
TIF’s profit would be $201.32 million giving it 15.70 P/E if the $1.62 EPS is
correct. After having $0.80 EPS previously, Tiffany’s analysts see 102.50 % EPS
Tiffany has risen 46.84% since March 10, 2017 and is
uptrending. It has outperformed the S&P500 by 30.14%.
The retail sector has not been hit as hard as some other sectors
during recent sell-offs. While Tiffany & Co. is not cheap — priced at more than $100 a share
—the luxury jewelry and specialty retailer has strong brand equity and a lot of
room to grow under its new management. Last summer Alessandro Bogliolo was
appointed the new CEO.
Among 27 analysts covering Tiffany, 14 have Buy rating, 0 Sell and
13 Hold. Tiffany has $125.0 highest and $66 lowest target.
Option trade to consider: Buy the TIF APRIL 20 2018 105.000 CALL at approximately $2.05.
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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