The option tip is based on Infosys Tech (NASDAQ: INFY), the IT and consulting services firm based in India. INFY reports before the bell on Wednesday, with analysts expecting a profit of 69 cents a share vs. 65 cents a year ago.
“Infosys’ Earnings Report likely to Slide.....another rough quarter!”
Infosys Ltd. defines, designs and delivers IT enabled business solutions for its clients. defines, designs and delivers technology-enabled business solutions for Global 2000 companies.
Information for the Strategy
The stock has done horribly after recent reports. The shares have dropped after each of the past five reports, plunging an average of 8% in just one day. Taking out the huge 19% loss two quarters ago, the average loss is 5.2%. That’s plenty to make any option trader smile.
The chart shows the stock trading sideways for the past six weeks. But now it’s running into its declining 50-day moving average, a trendline the stock last closed above on Aug. 1.
The closest competitor for INFY that has posted some recent earnings data is Accenture (NYSE: ACN), which reported a solid quarter last week.
This market is looking for reasons to knock any stock lower. And it’s been finding plenty of them with INFY in recent quarters. Look for the pattern to continue.
The Option Tip
buy the Infosys Tech (INFY) Oct. 52.50 put for $3.50 or less.
Take control of your future prosperity the Easy way. Become a member of Stock Options Made Easy today!