by Ian Harvey
March 03, 2018
OUT WHILST THE GOING IS GOOD!
GREED CAN BE THE UNDOING OF A GOOD PROFIT!
Earnings Predictions Update
With Footlocker’s earnings presented, and sending our put options trade soaring to a potential profit of 300%, we can update the “Earnings Trades for the Week Beginning February 26, 2018”. These options trade were presented in the article “Earnings Predictions for the Week Beginning February 26, 2018”; which has produced excellent potential profits of 751% by the end of the week!
A previous update for the “Earnings Predictions” can be found HERE.
YOU NEED TO BE IN TO PROFIT!
The Trades to Consider……
“EARNINGS PREDICTIONS UPDATE”
|February 26, 2018||PANW MARCH 16 2018 170.000 CALL||P.P: 87%%|
|February 27, 2018||M MARCH 16 2018 25.000 PUT||-75%|
|February 28, 2018||LOW MARCH 16 2018 95.000 PUT||P.P: 332%|
|March 01, 2018||AMBA MARCH 16 2018 47.500 PUT||P.P: 107%|
|March 01, 2018||FL MARCH 16 2018 45.000 PUT||P.P: 300%|
Foot Locker, Inc. (NYSE:FL) -- a retailer of shoes and apparel, is expected to release earnings before the market opens. Based on 12 analysts' forecasts, the consensus EPS forecast for the quarter is $1.25. The reported EPS for the same quarter last year was $1.37.
Sales growth in 2017 sank into negative territory, slumping by 6% in the fiscal second quarter before rebounding slightly to a 4% decline in the following quarter. And this scenario is likely to continue in 2018 as Foot Locker works to trim its store footprint in the sluggish U.S. market.
Weak demand has led management to target closing as many as 150 stores in 2017, up from 116 in the prior year. Foot Locker's sales footprint plans for 2018 will depend on whether the business stabilized over the holiday season, but the consensus is that it will likely continue in 2018.
Given the stock's weak performance over the past year, Wall Street is apparently betting on that more pessimistic scenario playing out in 2018.
Option trade to consider: Buy the FL MARCH 16 2018 45.000 PUT at approximately $1.70.
Foot Locker stock crashed hard on Friday following the release of its earnings report for the fourth quarter of the year after the company said comparable sales declined in the fourth quarter, and offered a weak outlook for 2018.
The company said its profit fell to $139 million, or $1.14 per share. This was down from $182 million, or $1.37 per share, in last year's fourth quarter.
Analysts had expected the company to earn $1.25 per share.
CFO Lauren Peters said sales and margin trends were likely to continue into the first quarter of the current year, adding to investor nervousness.
So, for those traders who managed to execute these trades recommended for consideration by Stock Options Made Easy; combining potential profits already mentioned with Fridays’ Footlockers’ report; a nice tidy potential profit of 751% was to be made within a short period of time.
Past Profits from Foot Locker…….
"YOU NEED TO BE IN IT TO WIN IT!"
Now is the time to decide if it is worth continuing to hold this trade or exit on excellent profits. It is nearly always prudent to exit a trade before an unknown incident occurs that could rattle a sound profit, and this is a fine example of such a situation.
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……