Earnings Predictions
for the
Week Beginning July 02, 2018

Trading Capital Management!

The "Scared Rabbit" Syndrome Maybe Less Effective This Week! 

by Ian Harvey

July 01, 2018

Share

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

The past week has seen many traders and investors suffering from a case of the “scared rabbit” syndrome! Each time President Donald Trump made some detrimental statement in regard to trade the market went into convulsions and whip-sawed dramatically; to eventually realize that there was little basis in the headline that had caused the fracas.

As mentioned earlier last week in the article - “Trading Over-Reaction!” - Trump playing the ‘Art of the Deal’ with China,” -- start scary, and then walk back the threat to a much more digestible place; and this strategy will likely continue in the future, particularly relating to trade and tariffs. Even though the Trump administration likes to start any negotiations heated and very over-done, the actual end result is quite mild – as there is normally a lot of back-pedaling again and again from these wild first negotiating positions.

It seems that investors are looking for something to be worried about. Stocks aren’t far from all-time highs, and for a lot of people that’s hard to justify.

Expectations for the second half of the year is that there will be an averted all-out trade war, economies domestically and globally will continue to do pretty well, and eventually the “scared-rabbit” syndrome will die down!


“EARNINGS PREDICTIONS for LAST WEEK” – 4 OUT OF 5 WERE WINNERS!

DATE TRADE GAIN
June 26, 2018 JKS AUG 17 2018 14.000 PUT P.P: 75%
June 27, 2018 GIS JULY 20 2018 45.000 PUT P.P: 74%
June 26, 2018 BBBY JULY 20 2018 20.000 PUT P.P: 49%
June 26, 2018 NKE JULY 20 2018 75.000 CALL P.P: 355%

TOTAL potential profit for these 4 trades= P.P: 553%.

Even deducting a total loss on the other option trade – STZ – you would be 453% potential profit in front following the strategy mentioned below –“Trading Capital Management”! Obviously this trade could make a comeback, similar to Etsy (.....read article.....), or even give back some of the capital used to purchase the options.

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.

Many new traders fail to consider the fact that it is wise for portions of their capital to be evenly distributed among the trades they are entering. Even experienced traders may be caught out by investing a higher amount of trading capital in a trade which turns out to be unsuccessful, or under-investing in other trades which succeed and could have covered or surpassed the loss sustained in the losing trade. Think of the adage regarding putting all your eggs (or even a greater percentage of those eggs) in one basket.

The way to maximize your potential profit is to allocate a specific amount of your trading capital that you wish to dedicate to each trade, and then calculate the number of contacts that this figure enables you to enter.

It is not the number of contracts in play, but the amount of money used to execute 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, July 02

Herman Miller, Inc. (NASDAQ: MLHR), the office furniture maker, will report its fiscal fourth-quarter numbers after the market closes. Analysts are calling for earnings of $0.58 per share, down from $0.64 during the same period last year. Last quarter $0.50 earnings per share were reported; but analysts forecast 16.00% EPS growth this quarter.

Management's previously issued guidance aims for net sales of between $590 million and $610 million. Organic revenue growth is projected to hit 4% versus the fourth quarter of fiscal 2017 at the midpoint of this range.

MLHR has lost 16.1% on the year despite a strong economy with low unemployment.........

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

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

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


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 Earnings Predictions for the Week Beginning July 02, 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