by Ian Harvey
June 17, 2018
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
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.
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
“EARNINGS PREDICTIONS for LAST WEEK” - TAKING PROFITS AFTER EARNINGS REPORTS!
|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!
|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%|
OUT WHILST THE GOING IS GOOD!
GREED CAN BE THE UNDOING OF A GOOD PROFIT!
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.
& 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
now appears that HRB is considered to be oversold as the RSI reading has fallen
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
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!"
"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…….
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