American Eagle Outfitters
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American Eagle Outfitters (NYSE:AEO) Option Calls

Provides 138% Profit!

by Ian Harvey

December 07, 2017


American Eagle Outfitters (NYSE:AEO)

Here is an update of American Eagle Outfitters’s winning options call trade after reporting earnings. This options trade was recommended, to “Cut-To-The-Chase” Members of Stock Options Made Easy, on Tuesday, December 05, 2017 -- in the article ““Cut-to-the-Chase” Recommendations - Week Beginning Monday, December 04, 2017”; producing excellent potential profits of 138% within 24 hours of executing the trade!


The Recommendation……

…….from ““Cut-to-the-Chase” Recommendations - Week Beginning Monday, December 04, 2017”.

The Details……..

American Eagle Outfitters (NYSE:AEO), a specialty retailer, operating over 1,000 retail stores and online at and in the United States and internationally, is expected to report earnings before the market opens tomorrow, Wednesday, December 6, 2017. The consensus earnings estimate is $0.39 per share and sales are projected to climb 2.57% to hit $964.78 million. The Earnings Whisper number is $0.40 per share. For the full-year, the company’s sales are projected to climb 3.13% to reach as high as $3.78 billion.

Short interest has decreased by 6.9% since the company's last earnings release. Overall earnings estimates have been revised higher since the company's last earnings release.

American Eagle is trading at 13.33x earnings, which marks a discount compared to its industry’s average and fairs well against the S&P 500.

In the last four weeks alone, shares of American Eagle have surged 15.10%.

The Trade……..

** OPTION TRADE: Buy the AEO DEC 15 2017 17.000 CALL at approximately $0.55.

Sell price is left to your own judgment.

The Report………

American Eagle reported a slip in profits during the third quarter, with net income at $63.7 million, or 36 cents per share, compared to $75.7 million, or 41 cents per share, in the same period last year.

But consolidated comparable sales, a key measure that tracks stores open for longer than a year, were up 3 percent during the quarter, following a 2 percent increase last year.

“The third quarter produced record sales, sequential margin improvement and marked 11 straight quarters of comp sales growth,” said Mr. Schottenstein. “Digital sales continued to grow at a rapid pace, while we also saw store sales strengthen.”

Analysts at Jefferies noted the teen retailer’s “solid” quarter. “We are encouraged that trends have accelerated into the critical holiday season, and continue to see AEO benefiting from a consolidating space, plus a strong bottoms cycle.”

In the fourth quarter, the company expects earnings per share to range between 42 cents and 44 cents.

End Result……..

Shares of American Eagle Outfitters AEO gained 2.42% on Wednesday despite missing both top and bottom line estimates in its third-quarter.

Tuesday close saw AEO shares at $16.12. At the open Wednesday the shares hit $17.01, despite missing both top and bottom line estimates in its third-quarter; and closed the day at $16.50, up $0.38; or 2.36 %.

The Profit……..

So, for those traders who managed to execute this trade recommended by Stock Options Made Easy; a nice tidy potential profit of 138% within 24 hours.



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


”Success is simple. Do what's right, the right way, at the right time.”

Option Tip for your Success!
Options traders are not successful because they win.
Options traders win because they are successful.

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