Last Week’s Earnings Predictions Results
- Week Beginning June 11, 2018
-

And Further Recommendations To Consider!

by Ian Harvey

June 17, 2018

Share


YOU NEED TO BE IN TO PROFIT!

DON'T MISS OUT!

Strategies To Consider When Exiting Earnings Predictions Options Trades…..

Let us review the trades for last week and see where our position stands in regard to potential profits!

It has been, again, a successful week for the “Earnings Predictions” members; out of five (5) trades, three provided great profits. The other two trades are still in play, but adjustments to the trades could be helpful (see details below).

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.

This situation would have been appropriate for H & R Block Inc and Adobe Systems; but would have been detrimental for the other three trades, as seen in the charts below.


“EARNINGS PREDICTIONS for LAST WEEK” - TAKING PROFITS AFTER EARNINGS REPORTS!

DATE TRADE GAIN
June 11, 2018 PLAY JULY 20 2018 50.000 CALL P.P: 339%
June 14, 2018 MIK JULY 20 2018 20.000 PUT P.P: 203%
June 15, 2018 GOOS JULY 20 2018 45.000 CALL P.P: 522%

TOTAL potential profit for these 3 trades= P.P: 1,064%.


“EARNINGS PREDICTIONS for LAST WEEK” – 2 TRADES PERFORMING POORLY – BUT PROFITABLE BEFORE THE EARNINGS REPORT!

DATE TRADE GAIN
June 06, 2018 HRB JULY 20 2018 30.000 CALL P.P: 50%
June 14, 2018 ADBE JULY 20 2018 260.000 CALL P.P: 55%

GETTING OUT WHILST THE GOING IS GOOD!

GREED CAN BE THE UNDOING OF A GOOD PROFIT!

The Result……

Now, a closer look at the two trades that went in opposite directions to our predictions, but were up before reporting earnings……so, for those traders that are still holding these trades, or for those wishing to enter the trades now, the following information might be beneficial.

1.      H & R Block Inc (NYSE:HRB) - reported earnings of $5.45 per share and revenue of $2.39 billion, both of which beat analysts' estimates. However, the problem lies with the fact that the company's 2019 guidance came in lower than expected. H&R Block expects fiscal 2019 revenue between $3.05 billion and $3.1 billion, while analysts were looking for $3.14 billion. This would also represent a drop from fiscal 2018's $3.16 billion.

It now appears that HRB is considered to be oversold as the RSI reading has fallen below 30.

In trading on Wednesday, shares of H & R Block entered into oversold territory, hitting an RSI reading of 24.8, after changing hands as low as $23.33 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 70.0. Looking at this from a bullish perspective a trader could consider that HRB's 24.8 RSI reading is a sign that the recent heavy selling is in the process of exhausting itself, and consider extending an existing options trade or taking a new trade.

One Option trade to consider: Buy the HRB OCT 19 2018 25.000 CALL at approximately $1.15.

2.      Adobe Systems Incorporated (NASDAQ:ADBE) – reported late Thursday beating Wall Street's targets for its fiscal second quarter and guided higher for the current quarter, but shares fell in extended trading.

Adobe Systems earned an adjusted $1.66 a share, up 63% year over year, for the period ended June 1. Sales rose 24% to $2.20 billion. Analysts expected the San Jose, Calif.-based company to earn an adjusted $1.54 a share on sales of $2.16 billion.

For its current fiscal third quarter, Adobe expects to earn an adjusted $1.68 a share on sales of $2.24 billion. Wall Street was looking for Adobe to earn $1.61 a share on sales of $2.22 billion.

It appears that one of the major reasons that ADBE dipped was due to management only guiding inline revenues, contributing to the reaction of disappointment from investors.

However, the ADBE CFO said that they expect their momentum to continue – and besides, ADBE is a stock that came into the report up 85% in a year and 45% in 2018 alone. So a small retracement is necessary to maintain the overall trend.

Dips in Adobe stock are rare and shallow.

Therefore consider the following option trade…….

Double-down on the existing trade: -- Buy the ADBE JULY 20 2018 260.000 CALL at approximately $4.00.

 

 "THE DECISION IS YOURS!"

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”.

ACTION TO TAKE…….

"YOU NEED TO BE IN IT TO WIN IT!"

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.

If you wish to receive more options trading recommendations similar to this, which will help boost your portfolio strategy, get on board with the members of Stock Options Made Easy.

Our proven track record says it all!!

As to recommendations for Members of Stock Options Made Easy; they  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 other memberships available from Stock Options Made Easy; and being part of this profitable action just click here……


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


Share



”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.



Back to Stock Options Made Easy Home Page from Last Week’s Earnings Predictions Results - Week Beginning June 11, 2018





Search Stock Options
Made Easy



Enjoy Relaxed or Fast-Paced Trading? Choose your Membership Style...

Whether you prefer to take a laid-back approach to your trading,

or to charge ahead in your options trading,

 Stock Options Made Easy Armchair Trader and Cut-to-the-Chase Trader Memberships put everything you need to succeed at your fingertips for just  $39 or $79 per month.







Subscribe to our FREE
newsletter for all the latest options news!


Enter Your Email Address

Enter Your First Name