Keep Benefiting From a Continued Avalanche of Reports
by Ian Harvey
July 30, 2017
Benefiting from an avalanche of reports and the earnings predictions associated using options trades.
The Q2 earnings season, so far, paints a positive earnings picture due to key positive aspects; including broad-based growth, record earnings tally, an abundance of positive surprises and favorable trends on the revisions front; and this is expected to continue in the week ahead.
There are more than 1000 companies expected to report their results this week, including 130 S&P 500 members; such as Apple (AAPL), Pfizer (PFE), Tesla (TSLA), Shopify (SHOP), Square (SQ), Activision Blizzard. (ATVI), Under Armour (UAA), Chesapeake Energy (CHK), Pandora Media (P) and Yum Brands (YUM), to name a few of some of the recognizable reports coming out this week.
There have been plenty of positives so far from the early start of the earnings season, and members of Stock Options Made Easy have been benefiting from this situation; here are some of these positive aspects:-
A Look Back At Last Week’s Earnings Predictions
Earnings Results for the Week Beginning
|28 July 2017||XOM AUG 18 2017 80.000 PUT||P.P: 81%|
|27 July 2017||INTC AUG 18 2017 35.000 CALL||P.P: 162%|
|27 July 2017||ABBV SEPT 15 2017 72.500 PUT||P.P: 124%|
|27 July 2017||AMZN AUG 18 2017 1030.000 CALL||P.P: 95%|
|26 July 2017||FB AUG 18 2017 165.000 CALL||P.P: 126%|
|25 July 2017||AMD AUG 18 2017 14.000 CALL||P.P: 134%|
|25 July 2017||CAT AUG 18 2017 105.000 CALL||P.P: 169%|
|25 July 2017||MCD AUG 18 2017 155.000 CALL||P.P: 124%|
Options Trades to Consider Based on Expected Earnings Reports:
Tuesday, August 01
Apple Inc. (NASDAQ:AAPL) - The tech giant's June-quarter earnings report, due out after the market close Tuesday, is largely seen as a nonevent as investors increasingly focus on the September quarter and the expected launch of the iPhone 8.
However, Apple’s revenues will continue to be driven by the fast growing “Services” segment as well the sales (albeit slowing down) of iPhone 7 and 7 Plus. Services include revenues from App store, Apple Music and Apple Pay.
Option trade to consider: Buy the APPL Aug 18 2017 150.00 Call at approximately $3.40.
Match Group Inc. (NASDAQ:MTCH) - Online dating service Match reports Q2 earnings late Tuesday, and EPS is expected to rise 12% to 19 cents with revenue up 5% to $316 million. Match's growth engine has been mobile app Tinder.
Option trade to consider: Buy the MTCH Aug 18 2017 20.00 Call at approximately $0.35.
Diamondback Energy Inc. (NASDAQ:FANG) - Diamondback Energy, Inc. looks as if it is poised to beat at earnings season as events are shaping up quite nicely for their report. One reason is that Diamondback Energy is seeing favorable earnings estimate revision activity as of late, which is generally a precursor to an earnings beat.
Option trade to consider: Buy the FANG Aug 18 2017 100.00 Call at approximately $1.40.
Wednesday, August 02
Tesla Inc (NASDAQ:TSLA) - The electric car company reports Q2 earnings after the market close Wednesday as production ramps up on the Model 3, the first of which will be delivered tonight. But doubts remain over Tesla's ability to reach its ambitious production goals as deliveries fell to 22,000 in Q2 from 25,000 in Q1. Consensus estimates have Q2 per-share losses widening to $1.80 from $1.61 a year ago, as investment poured in to get the Model 3 ready.
Option trade to consider: Buy the TSLA Aug 18 2017 315.00 Put at approximately $7.00.
Square Inc (NYSE:SQ) - The mobile payment company is set to report Q2 results after the market close Wednesday, and analysts see per-share losses shrinking to 5 cents from 8 cents a year ago as revenue grows 22% to $536 million. Square recently announced it will join forces with JPMorgan Chase (JPM) to boost its online payment services.
Option trade to consider: Buy the SQ Sep 15 2017 27.00 Call at approximately $1.60.
Take Two Interactive Software Inc (NASDAQ:TTWO) - Take-Two is expected to swing to a profit of 20 cents a share vs. the prior-year quarter's loss of 21 cents a share, on a 5% increase in revenue to $287 million. Aside from RDR2, TTWO has significant other initiatives in mobile, e-sports and an unannounced sequel to GTA V in the development pipeline.
Option trade to consider: Buy the TTWO Aug 18 2017 85.00 Call at approximately $1.40.
Zynga Inc (NASDAQ:ZNGA) - Popular legacy games, such as Words With Friends and Zynga Poker, have been optimized for mobile devices while simultaneously developing new mobile games. Analysts see "Words With Friends" parent Zynga logging 2 cents EPS, up from break-even last year, as sales rise 17% to $205 million.
Option trade to consider: Buy the ZNGA Sep 15 2017 4.00 Call at approximately $0.10.
Thursday, August 03
GrubHub Inc (NYSE:GRUB) - Wall Street expects EPS to rise 13% to 26 cents, as revenue jumps 32% to $158 million. Cowen recently upgraded Grubhub, saying competition was "in check" and that the company stands to benefit as online ordering and delivery become more popular for a restaurant industry trying attract stay-at-home diners and make up for weaker sales.
Option trade to consider: Buy the GRUB Aug 18 2017 47.50 Call at approximately $2.30.
Universal Display Corporation (NASDAQ:OLED) - To report Q2 results after the close, and analysts expect EPS to surge 59% to 73 cents, on sales of $85.6 million, up 33%.
Option trade to consider: Buy the OLED Aug 18 2017 125.00 Call at approximately $5.40.
Activision Blizzard – read article and recommended options trade -- “Cut-to-the-Chase” Recommendations - Week Beginning - Monday, July 17, 2017”
Option trade to consider: Buy the ATVI AUG 18 2017 65.000 CALL at approximately $1.00. Sell price is left to your own judgment.
Friday, August 04
Sempra Energy (NYSE:SRE) - Shares are gaining upward momentum, signifying a potential uptrend. Sempra Energy has risen 8.27% since July 28, 2016.
Option trade to consider: Buy the SRE Aug 18 2017 115.00 Call at approximately $0.75.
Cooper Tire & Rubber Co (NYSE:CTB) - its outlook for the rest of the year looks bleak, and the second quarter did not pan out as expected. The company saw weakness particularly in North America and China, and auto manufacturing inventories remained well above normal levels in the U.S. and China due to softer demand than underlying production.
Option trade to consider: Buy the CTB Aug 18 2017 37.00 Put at approximately $1.45.
You will notice that most options trades to consider have short-term expiry dates, as the expected movement of the option’s price should occur just prior to, or shortly after, report of earnings. It is entirely up to the individual trader as to whether they add a stop-loss or not.
Also Note: 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.
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