Mondelez International Inc. Slumps Monday!

But Option Puts Provide 127% Potential Profit In A Few Hours!

by Ian Harvey

October 30, 2017

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Mondelez International Inc. (NASDAQ:MDLZ)

Here is an overview of Mondelez International Inc. (NASDAQ:MDLZ)’s winning options put trade before reporting earnings. This options trade was recommended Monday, October 30, 2017, before the market opened, in the article by Stock Options Made Easy --  “Earnings Predictions for the Week Beginning October 30, 2017 - Profit From More Earnings Predictions!”; producing great profits within a few hours of executing the trade and exiting before an unknown earnings report !

The Recommendation……

…….from “Earnings Predictions for the Week Beginning October 30, 2017 - Profit From More Earnings Predictions!”

The Details……..

Mondelez International Inc. (NASDAQ:MDLZ) – will report third-quarter earnings after the market closes. For the third quarter, Mondelez's Consensus Estimate for earnings is pegged at 54 cents, reflecting a 3.4% year-over-year increase. Meanwhile, the Consensus Estimate for total revenues is pegged at $6.5 billion, implying 1.2% growth.

 Mondelez has been facing challenges to boost its volume since 2014, primarily due to soft consumer demand. In fact, the food industry has been giving a dismal performance for quite some time to boost sales. Mondelez, in particular, witnessed a decline in revenues for the last nine quarters, primarily due to lower demand.

The stock is down 7% year to date, following a trend of weak sales performance. As well, Mondelez's sales were down 2.8% on a 2.1% decline in volumes in the first half of 2017. Organically, sales decreased 1% in the period.

The maker of Oreos and Ritz crackers has struggled to find growth in North America as consumers in developed markets are buying fewer of the types of snacks it sells. Organic sales in North America declined 5% year over year in the first half of 2017. Sales growth worsened in the second quarter, falling 2.7%, after a malware incident wreaked havoc on the company's ability to invoice customers for orders.

Another concern ahead of Mondelez's report because is that Wall Street seems to have turned negative on the consumer packaged goods group. Looking at Hershey’s report last week; the report appeared to be sound, but the stock was hit hard. And it doesn’t seem to matter whether Mondelez delivers a good number or not as the group seems to be in the doldrums according to investors.

The Trade……..

** Option trade to consider: Buy the MDLZ NOV 17 2017 40.000 PUT at approximately $0.70.

The Report………

As this trade has already produced excellent potential profits before the company reported earnings results – exiting for 127% potential profit, before greed (and a possible reversal if the report is sound), seems to be a sound move.

End Result……..

Shares of Mondelez were among the S&P 500’s biggest fallers today, October 30. The stock hit a low of $39.19 during the day: but settled at $39.303.39%, a decline of 3.39%, by close of the day; to experience 13.42 million shares changing hands.

The Profit……..

So, for those traders who managed to execute this trade recommended by Stock Options Made Easy; a nice tidy potential profit of 127% within a few hours.

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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