Earnings Predictions
for the
Week Beginning June 11, 2018

Comparing Exiting Options Trades BEFORE and AFTER Earnings Reports!

by Ian Harvey

June 09, 2018

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Different Strategies Based On Exiting Earnings Predictions Options Trades…..

Let us review the trades for last week and see if it was better to exit before the earnings reports or to hold the trade until after the report.

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.

SO….looking at the following tables is an exit before or after an earnings report an appropriate decision?

“EARNINGS PREDICTIONS for LAST WEEK” - TAKING PROFITS BEFORE EARNINGS REPORTS!

DATE TRADE GAIN
June 04, 2018 COUP JULY 20 2018 55.000 CALL P.P: 37%
June 05, 2018 YY JUNE 15 2018 130.000 CALL P.P: 55%
June 06, 2018 SIG JULY 20 2018 40.000 PUT P.P: 0%
June 06, 2018 FIVE JUNE 15 2018 75.000 CALL P.P: 438%
June 07, 2018 AVGOJUNE 15 2018 260.000 CALL P.P: 120%

The End Result……

In this instance it appears that it would have been more beneficial, when looking at the total profit, to take profits after the earnings report was announced.

In an article on Monday, June 04, after the market closed – there was the possibility of having a profit of 433%; and this would then have alleviated any further anxiety for the rest of the week’s earnings.

So, by exiting the trade before each earnings report was announced, a total potential profit of 650% could be made. This would also relief any concerns of stock direction after the report.

Now looking below, taking the profits after the earnings report certainly pays off; with a total potential profit of 1,736%.

However, there were three companies that reported that did not match the desired options trade direction. The input from Five Below’s potential profit of 1,760% was certainly the saving trade for the week.

Going back to the week before this – if you had opted out before the earnings report the potential profit would have been 168% compared to a loss of 117% when exiting the trade after the results had been announced. (Bear-in-mind, that this was a bad week in comparison to results from previous weeks – view the results here)

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”.


“EARNINGS PREDICTIONS for LAST WEEK” - TAKING PROFITS AFTER EARNINGS REPORTS!

DATE TRADE GAIN
June 04, 2018 COUP JULY 20 2018 55.000 CALL P.P: 163%
June 05, 2018 YY JUNE 15 2018 130.000 CALL -78.5%
June 06, 2018 SIG JULY 20 2018 40.000 PUT -91%
June 06, 2018 FIVE JUNE 15 2018 75.000 CALL P.P: 1,760%
June 07, 2018 AVGOJUNE 15 2018 260.000 CALL -17.5%

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. GREED can be the undoing of a nice profit!

Options Trades to Consider Based on Expected Earnings Reports:

Monday, June 11

Dave & Buster's Entertainment Inc (NASDAQ: PLAY), an American restaurant and entertainment business headquartered in Dallas, will report earnings after the market closes.

The consensus EPS forecast for the quarter is $0.93, with revenues of $322.27 million. The reported EPS for the same quarter last year was $0.87. The revenue would mark a nearly 6% climb from the year-ago period when the company posted quarterly revenues of $304.15 million.........

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

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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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