Earnings Predictions
for the
Week Beginning June 18, 2018

Trade War Considerations!

Exiting Options Trades
BEFORE or AFTER Earnings Reports?

by Ian Harvey

June 17, 2018

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Strategies To Consider When Exiting Earnings Predictions Options Trades…..

Let us review the trades for last week and see where our position stands in regard to potential profits!

It has been, again, a successful week for the “Earnings Predictions” members; out of five (5) trades, three provided great profits (see table below). The other two trades are still in play, but adjustments to the trades could be helpful (see details below).

It is also worth considering, when trading options on 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.

This situation would have been appropriate for H & R Block Inc and Adobe Systems; but would have been detrimental for the other three trades, as seen in the charts below.


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

DATE TRADE GAIN
June 11, 2018 PLAY JULY 20 2018 50.000 CALL P.P: 339%
June 14, 2018 MIK JULY 20 2018 20.000 PUT P.P: 203%
June 15, 2018 GOOS JULY 20 2018 45.000 CALL P.P: 522%

TOTAL potential profit for these 3 trades = P.P: 1,064%.


“EARNINGS PREDICTIONS for LAST WEEK” – 2 TRADES PERFORMING POORLY – BUT PROFITABLE BEFORE THE EARNINGS REPORT!

DATE TRADE GAIN
June 06, 2018 HRB JULY 20 2018 30.000 CALL P.P: 50%
June 14, 2018 ADBE JULY 20 2018 260.000 CALL P.P: 55%

The Result……

Now, a closer look at the two trades that went in opposite directions to our predictions, but were up before reporting earnings……so, for those traders that are still holding these trades, or for those wishing to enter the trades now, the following information might be beneficial…..click here to see how to trade these stocks now….

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 Earnings This Week Consider This Information……

Markets opened lower on Friday after President Donald Trump and his administration announced that it will impose $50 billion worth of tariffs on goods from China. With trade war fears between the world's two largest economies heightened once again, expect Washington's "tit-for-tat tariff situation" with Beijing to come into focus; this could greatly affect companies reporting their quarterly earnings results this week.

The official White House statement said it would implement a 25% tariff on $50 billion of Chinese goods "that contain industrially significant technologies." China then responded in kind, noting that the country will roll out its own tariffs on American goods in "equal scale and equal strength."

Although some market-watchers think the tariff debacle could dissipate due to its negative impact on economies, geopolitical relations and stocks; be prepared for the situation to weigh on stocks as the market entered Monday's trading session, as it appears that President Trump is unlikely to budge in his decision.

My Suggestion…..if you have made good profit before the earnings report it would be prudent to exit, at this stage.

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:

Tuesday, June 19

Cloud computing giant Oracle Corporation (NYSE:ORCL) will report its latest quarterly earnings report after the market closes on June 19.

The consensus earnings estimate is $0.94 per share on revenue of $11.20 billion; however, the Whisper number is for $0.96 per share. The company's guidance was for earnings of $0.89 to $0.92 per share. Consensus estimates are for year-over-year earnings growth of 8.05% with revenue increasing by 2.83%.........

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

Not a Member .........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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