Earnings Predictions
for the
Week Beginning August 27, 2018

4 Winners Out Of 5!
Potential Profit of 894%

Exiting Options Trades BEFORE or AFTER Earnings Reports?

by Ian Harvey

August 25, 2018

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

Fed Chair Jerome Powell's speech in Jackson Hole saw the central banker predicting "further, gradual" rate hikes and calling the U.S. economy "strong."

For the week, the Dow finished up 0.5% at 25,790.35; and  the S&P 500 was also up 0.9 percent at 2,874.69. Meanwhile, the Nasdaq Composite set a record high, up 1.7 percent to settle at 7,945.98 for the week.

Moving Ahead…..

Stocks could close out the dog days of summer on a positive note, especially if NAFTA trade talks go well.

Retailers will continue to dominate the earnings calendar, with Dick's Sporting Goods (DKS) among those getting ready to report. Cloud names will also be in focus, with Salesforce.com (CRM) and Box (BOX) both releasing quarterly results.

If there is a deal on NAFTA, that is market positive and then there's a complete focus on China.

U.S. and Mexican trade officials are believed to be close to an agreement and were planning to work over the weekend to find an agreement on bilateral issues, which would pave the way to bring Canada back into negotiations on a revised North American Free Trade Agreement.

All three governments are hoping for an August 30 deadline.

Reviewing the Earnings Predictions from Last Week….. 

NOTE: I have previously mentioned that it is often a great strategy to exit an earnings predictions trade before earnings if there is a substantial profit to be made. This was again true before Foot Locker reported on Friday last week. The options trade hit $4.60 before earnings; buying in at $2.70, this would have given a potential profit of 70%.


“EARNINGS PREDICTIONS for LAST WEEK”!

DATE TRADE GAIN
August 21, 2018 TJX SEPT 21 2018 105.000 CALL P.P: 260%
August 21, 2018 KSS SEPT 21 2018 77.500 CALL P.P: 56%
August 22, 2018 TGT SEPT 21 2018 85.000 CALL P.P: 118%
August 23, 2018 SPLK SEPT 21 2018 110.000 CALL P.P: 460%

TOTAL potential profit for these 4 trades= P.P: 894%.

Another “Great Week”, despite FL going south after earnings!

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!

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”.

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……

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.

GETTING OUT WHILST THE GOING IS GOOD!

GREED CAN BE THE UNDOING OF A GOOD PROFIT!

Options Trades to Consider Based on Expected Earnings Reports:

Monday, August 27

Phibro Animal Health Corp (NASDAQ: PAHC), a diversified animal health and mineral nutrition company, will report earnings after the market closes. Equities research analysts forecast that Phibro will post $0.44 earnings per share for the current fiscal quarter.

Phibro Animal Health posted earnings per share of $0.39 in the same quarter last year, which would suggest a positive year over year growth rate of 12.8%. Analysts expect that Phibro Animal Health will report full-year earnings of $1.71 per share for the current year, with EPS estimates ranging from $1.70 to $1.72. For the next year, analysts anticipate that the firm will report earnings of $1.88 per share, with EPS estimates ranging from $1.86 to $1.90.

Phibro Animal Health Corporation returned 5.61% in the last 30 days. Over three months, its share price has changed by 13.27%; and in one year it has increased by 26.07%.

Based on the last reported financials, the company's return on equity is 35.78%, return on assets is 9.13%, profit margin is 7.03%, price-to-sales is 3.27 and price-to-book is 10.70..............

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

considering......

Not a Member yet?.........SIGN UP

DON'T MISS OUT - MORE TO COME!

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, check out the other  memberships available at Stock Options Made Easy.


”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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