Companies Reporting Earnings 
for the
Week Beginning February 18, 2019

Profiting From Trading Options!

by Ian Harvey

February 17, 2019

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A Quick Review of Last Week’s Market…..

The 30-stock Dow's eight-week winning streak is its longest since the one ending November 3, 2017. The Nasdaq also posted its eighth consecutive weekly gain. The S&P 500, meanwhile, closed its seventh weekly gain in eight.

For the week, the Dow Jones Industrial Average (DJI) finished up 3.1% at 25,883.25 for the eighth consecutive weekly win.

The S&P 500 Index (SPX) was up 2.5% at 2,775.60 for the week.

And the Nasdaq Composite (IXIC) was up 2.3% for the week at 7,472.41.

The market is becoming rational again and simply rebounding from an irrational sell-off last fall due to fears of a Chinese economic hard landing, worries that a slowdown in China could spread around the world, tariff worries, and concern over tighter Federal Reserve monetary policy.

The China-U.S. trade talks are also helping the market take on more rational course. A trade deal translates into higher earnings and higher earnings almost always lead to higher stock prices. Also, there is speculation that economies around the world could return to sustainable global growth.

Our Armchair Trader Members saw their Spotify Technology SA (NYSE: SPOT) option calls climb from $5.35 to hit a high for the week of $11.65.

Meanwhile, Mentorship Memberssaw their Cisco Systems, Inc. (NASDAQ:CSCO) options calls climb from 1.15 to 2.25 – up 96%. As well, Crocs, Inc. (NASDAQ: CROX) option calls climbed from $1.90 to $2.65 during the week – another 39%. Also, World Wrestling Entertainment, Inc. (NYSE: WWE) calls provided another 56% potential profit.

As well, Cut-to-the-Chase Membershad their Box Inc (NYSE: BOX) option calls up 31%. And, Microchip Technology Inc. (NASDAQ:MCHP) option calls up 74%.

Moving Ahead…..

The week ahead is a holiday-shortened one, with U.S. markets closed Monday for Presidents Day.

The Fed calmed the markets in late January when it said it could stop raising interest rates which should be re-iterated the Fed releases the minutes of its meeting Wednesday afternoon. As well, positive comments on trade talks between U.S. and Chinese officials, and a commitment to continue talks should continue to support the market in the week ahead.

There will also be plenty more earnings reports to consider, from companies such as Walmart (WMT) and Roku (ROKU), not to mention a handful of consumer staples stocks.

Earnings to Watch…..

Monday

Market holiday

Tuesday

Earnings: Walmart, American Water Works, Anglogold, Advance Auto Parts, Expeditors International, Genuine Parts, Noble Energy, HSBC, BHP Billiton, FirstEnergy, Host Hotels, Devon Energy, Herbalife Nutrition

Wednesday

Earnings: CVS Health, Bausch Health, HollyFrontier, Gannett, Owens Corning, Wolverine Worldwide, Boston Beer, Cheesecake Factory, Sturm Ruger, Universal Forest Products, Weingarten Realty, WPX Energy, Avis Budget, Energy Transfer, Flowserve, Kaiser Aluminum, Jack in the Box, Avis Budget, Energy Transfer, Entergy, Southern Co

Thursday

Earnings: Barclays, Baidu, Kraft Heinz, Hormel Foods, Hewlett Packard Enterprises, Caesars Entertainment, Zillow, First Solar, Intuit, Delphi Automotive, Norwegian Cruise Lines, Sprouts Farmers Market, Allscripts Healthcare, Axa, Eldorado Gold, Visteon, Wendy's, Windstream, Dropbox, Reliance Steel and Aluminum, Norwegian Cruise Line

Friday

Earnings: Royal Bank of Canada, AutoNation, Cabot Oil and Gas, Wayfair, Cinemark, Pinnacle West

Economic Data to Watch…..

Monday

  • Market holiday

Tuesday

  • 8:50 a.m. Cleveland Fed President Loretta Mester

Wednesday

  • 2:00 p.m. FOMC minutes

Thursday

  • 7:50 a.m. Atlanta Fed President Raphael Bostic
  • 8:30 a.m. Jobless claims
  • 8:30 a.m. Philadelphia Fed manufacturing
  • 9:45 a.m. Manufacturing PMI
  • 9:45 a.m. Services PMI
  • 10:00 a.m. Existing home sales

Friday

  • 10:15 a.m. New York Fed President John Williams and San Francisco Fed President Mary Daly
  • 12:00 p.m. Fed Vice Chair Richard Clarida
  • 1:30 p.m. Philadelphia Fed President Patrick Harker, Fed Vice Chair Randal Quarles, Kansas City Fed President James Bullard
  • 5:30 p.m. New York Fed President John Williams

CONTROL OF EMOTIONS AND LESS PANIC WILL HELP YOUR PROFIT MARGIN!

GETTING OUT WHILST THE GOING IS GOOD!

GREED CAN BE THE UNDOING OF A GOOD PROFIT!

YOU NEED TO BE IN IT TO PROFIT!

Options Trades to Consider Based on Expected Earnings Reports:

Wednesday, February 20, 2019

Analog Devices, Inc. (NASDAQ:ADI), one of the world leaders in the design, manufacture and marketing of high-performance analog, mixed-signal and digital signal processing integrated circuits, will report earnings before the market opens. This semiconductor maker is expected to post quarterly earnings of $1.28 per share, which represents a year-over-year change of -9.9%. Revenues are expected to be $1.51 billion, down 0.6% from the year-ago quarter.

In the last reported quarter, Analog Devices' earnings of $1.55 per share delivered a positive surprise of 1.97%. The figure increased 1.3% sequentially and 6.9% from the year-ago quarter. Revenues in the fiscal fourth quarter were $1.6 billion which topped the consensus mark of $1.57 billion. As well, the figure improved 3.6% year over year and 1.5% sequentially.

The top-line growth can be attributed to the company's robust performance in the industrial and communication end-markets.

Factors behind Analog’s Momentum…..

  • …..continues to benefit from solid momentum across the industrial, automotive and communications end markets.
  • …..managed to grow its communication business at a 12.3-percent compounded annual growth rate, which is nearly three times the 4.2-percent peer median growth rate.
  • …..strengthening performance in Chinese communication market is a tailwind.
  • …..deepening focus on product innovation and operational efficiency is a major positive.
  • …..expected to ride on the digital factory envision by Industry 4.0.
  • …..has capability to cater to the customer's required level of precision and robustness will continue to drive performance in this particular market in the to-be-reported quarter......

……..Read the rest of the report to see what options trades we are considering......

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DON'T MISS OUT - MORE TO COME!

Don’t miss out – check out further options trades recommended for the week ahead by becoming a member of Stock Options Made Easy “Earnings Predictions”.

An Important Note: That these suggestions for options trade considerations require investors/traders to use their own discretion as to when to enter or exit! As well, it is advisable to do further research and due diligence before executing your trade.

It is sometimes best to exit a trade, if there is already sufficient profit accrued, before an earnings report is presented.

If you wish to receive more options trading recommendations similar to this, which will help boost your portfolio strategy, check out the other  memberships available at Stock Options Made Easy.

When To Exit A Trade Based On Earnings?.....

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?” 

As most traders realize, there is a 50/50 chance that the company stock price could go either way after reporting earnings – even if the report is good, the stock price could reverse – and if you hold a call option, means depletion of an already good profit if it exists. A similar situation can be found if you hold a put option, and a report is not that sound (and you expect a profit from this) but the stock price can, at times move upwards due to traders bias or other external conditions......READ MORE.....

The Decision Is Yours!

Before You Trade Consider This Strategy……

"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……


”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.


Best of Trading,
Ian Harvey
Director of Stock Options Made Easy


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”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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