by Ian Harvey
October 04, 2018
OUT WHILST THE GOING IS GOOD!
GREED CAN BE THE UNDOING OF A GOOD PROFIT!
Bilibili Inc – ADR (NASDAQ: BILI)
Bilibili is soaring – up 7.96% at close of market; and up 8.56% by end of after-hours trading. An option call trade was recommended to “Cut-To-The-Chase” Members on Monday, August 27, 2018, originally based on earnings and the rapidly growing streaming play in China; at the time providing potential profits of 171% - but now, with the investment from Tencent of $317.6 million, the potential profit has soared to 411%.
PATIENCE PAYS OFF!
YOU NEED TO BE IN TO PROFIT!
Gaming platform Bilibili Inc (NASDAQ: BILI), another rapidly growing streaming play in China, is confirmed to report earnings today, Monday, August 27, 2018, after the market closes. The consensus estimate is for a loss of $0.03 per share on revenue of $142.41 million.
Who Is Bilibili?
BILI is a Chinese hybrid of Twitch, Crunchyroll, and Kings Games. The company listed on the NASDAQ on March 2018, opening at $9.80 on its first day of trading, and has a market cap of around $4 billion.
BILI's audience consists of over 77.5 million monthly active users (up 35% y/y in Q1) and 2.5 million paying members (up 190% in Q1).
The Original Trade……..
** OPTION TRADE: Buy BILI OCT 19 2018 12.500 CALL at approximately $0.60 TO $0.70.
So, for “Cut-To-The-Chase” members, who managed to execute this trade recommended by Stock Options Made Easy; potential profits of 411% were available yesterday – maybe more will follow today if the stock price continues to climb and the market responds positively.
Entering the option trade at a cost of $0.60 or less; and the sell price on the option, at the moment is $3.07; a potential profit of 411% is applicable. Therefore, one options contract would provide a profit of $247.00; or 411% Potential Profit.
A NICE PROFIT FROM THIS OPTIONS TRADE!
Bilibili had a 16% rise before the opening bell, but declined to roughly 8% after the market commenced - still excellent!; due to the platform receiving a $317.6 million investment from Chinese internet behemoth Tencent. Under terms of the proposed transaction, Tencent will subscribe for nearly 25.1 million new class Z Bilibili shares at $12.67 each. After the deal closes, Tencent will have a 12.3% ownership stake in Bilibili.
Bilibili and Tencent don’t give an exact date of when the deal will close, but they expect it to be in the near future. Bilibili is still currently going through its IPO. The extra money from that and this deal will likely help it as it plans to further grow its business in the country.
Morgan Stanley analyst Alex Poon said, in a late September note, that the Tencent investment should come in handy, as Bilibili is in the early stages of transformation, with the growth in its investments outpacing revenue.
This surge in stock price extends the recent uptrend the shares have enjoyed since dipping below $10 back in mid-August, riding atop the 20-day moving average along the way. However, the security was trading above $20 as recently as June.
There's a notable amount of short interest on the Chinese stock, which only began trading publicly in the U.S. back in March. Going by average daily trading volumes, it would take BILI short sellers almost one week to cover their positions.
ACTION TO TAKE…….
** A New Options Trade To Consider: Buy the BILI JAN 18 2019 15.000 CALL at approximately $2.00. Sell price is left to your own judgment.
As you would have by now realized, some of our trades are based on earnings predictions. This is not to say all trades recommended to members follow this pattern, but it is obvious that it applied earlier in this case; however, the circumstances became enhanced with the Tencent investment. During earnings season this strategy of predicting earnings has been very profitable.Sometimes it is our approach 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 – such as found with the “Earnings Predictions Program”. This type of prediction is based on thorough investigation and fundamentally based research, and the results have been very exceptional. Strategies to Consider……
It is also worth considering, when options trading earnings reports – “Do we exit on already existing profits or leave the companies to report their earnings and hope for bigger profit?” .....READ MORE.....
"Trading Capital Management" is a key component of your trading strategy. The strategy, on which we base our trades to achieve maximum profit, and to minimize loss, is contingent on using an equal amount of money for each trade.……continue reading this article……
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.
If you not a member and interested in being part of this profitable action just CLICK HERE.
Other Membership Options…….
If you interested in "Earnings Predictions" just click here……
or "Mentorship Program".....click here....