by Ian Harvey
May 23, 2018
OUT WHILST THE GOING IS GOOD!
GREED CAN BE THE UNDOING OF A GOOD PROFIT!
International Game Technology Ordinary Shares (NYSE:IGT)
Here is an update of IGT’s winning options put trade after reporting earnings. This options trade was recommended as a consideration to members of Stock Options Made Easy “Earnings Predictions” on May 21, 2018”; which produced excellent potential profits of 170% -- within a couple of days of executing the trade!
PATIENCE PAYS OFF!
YOU NEED TO BE IN TO PROFIT!
International Game Technology Ordinary Shares (NYSE:IGT), that designs and manufactures gaming equipment, casino systems technology and game content, will report before the market opens. Analysts are calling for earnings of $0.27 per share; but the street has a very bullish whisper number of $0.33 per share. The company earned $0.29 per share during the same period last year, and the stock is currently up 13.2% on the year.
However, the stock, currently trading near US$30.00, appears to be overvalued by 75% compared to an intrinsic value of $17.06. Since International Game Technology’s share price is quite volatile, this could mean it can sink lower in the future. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.
International Game Technology growth prospects also seem limited at this stage. International Game Technology is actually expected to deliver a relatively unexciting top-line growth of 4.65% in the next few years, which doesn’t help build up its investment thesis. Growth doesn’t appear to be a main reason for a buy decision for the company, at least in the near term.
Option traders are pricing in a 15.5% move on earnings and the stock has averaged a 24.4% move in recent quarters……..continue reading.
Option trade to consider: Buy the IGT JUNE 15 2018 28.000
PUT at approximately $0.50.
International Game Technology reported first quarter EPS of $0.15 after the bell Monday, which fell short of the consensus estimate of $0.27. Revenue for the quarter came in at $1.21 billion beating analyst estimates of $1.16 billion.
International Game Technology gapped open sharply lower Tuesday morning. Stock price at Monday’s close was $29.81, but opened Tuesday at $$28.87; hitting a low of $27.08, and finally closing at $28.46.
The stock has fallen to a 2-week low.
So, for members of Stock Options Made Easy “Earnings Predictions”, who managed to execute this trade; a nice tidy profit already of more than 170% made within 48 hours.
Entering the option trade at a cost of $0.50 or less; and reaching as high as $1.35; one options contract would provide a profit of $85.00.ACTION TO TAKE…….
"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.
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!!
There are usually five (5) trades recommended for consideration each week; providing great profits – look at the chart in the article “Earnings Predictions” for this week.
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What To Do Now…….
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