Earnings Predictions
for the
Week Beginning July 16, 2018

Trade War Continues – But Little Reaction From China!

Trading Capital Management!

by Ian Harvey

July 15, 2018

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

Stocks in the past week closed sharply higher, with the S&P 500 up 1.5 percent to 2,801, its highest close since February. The Nasdaq was up 1.8 percent at 7,825, while the Dow was up 2.3 percent for the week to at 25,019.

Stocks had an upset midweek after the Trump administration announced new tariffs on China but rebounded Thursday and Friday.

Reviewing the Earnings Predictions from Last Week…..

We were expecting more reaction from the trade war debacle; but as it turned out, the threat by President Trump to slap new tariffs worth $200 billion on Chinese exports, saw little or no reaction, from the Chinese establishment; which bought a relief to the stock market trading. Therefore, two of the trades we advised to consider (Delta Air Lines, Inc. and PepsiCo, Inc.) that we felt would perform badly, managed better than expected earnings reports; and one trade (MSC Industrial Direct Co Inc) that was expected to present sound numbers actually ended up disappointing.

However, despite these set-backs, “Earnings Predictions” members of Stock Option Made Easy, if they followed our recommended trading strategy, would have had potential profit of 480.5% by close of the week; even taking into account the losses suffered from those trades mentioned above. The profitable trades are shown below.


“EARNINGS PREDICTIONS for LAST WEEK” – 2 OUT OF 5 WERE WINNERS!

DATE TRADE GAIN
July 11, 2018 FAST AUG 17 2018 50.000 CALL P.P: 540%
July 13, 2018 WFC AUG 17 2018 55.000 PUT P.P: 74%

TOTAL potential profit for these 2 trades = P.P: 614%.

Obviously those trades that have not been successful at this stage 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.

……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 16

Video-entertainment veteran Netflix, Inc. (NASDAQ:NFLX) will report earnings after the market closes. The consensus earnings estimate is for $0.80 per share on revenue of $3.94 billion; but the Whisper number is for $0.81 per share. The company's guidance was for earnings of approximately $0.79 per share. Consensus estimates are for year-over-year earnings growth of 433.33% with revenue increasing by 41.45%.

As well, Netflix said it expects to add 6.2 million new members, bringing its total to 131.2 million and marking a similar 26% surge from its prior-year quarter.

Netflix has been one of the market's biggest winners this year, but Friday’s lower close of 4.28% due to BMO Capital analyst Daniel Salmon reiterating a Hold rating on the stock and setting a price target of $400, as well as other analysts suggesting that the red-hot video streaming giant might be running out of steam thanks to its stretched valuation, has put a doubt on a positive earnings report..........

……..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


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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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