Earnings Predictions
for the
Week Beginning June 25, 2018

Trading Capital Management!

Exiting Options Trades
BEFORE or AFTER Earnings Reports?

by Ian Harvey

June 24, 2018

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

Despite a dramatic week based on trade war fears, which punished stocks yet again and sending the Dow Jones Industrial Average (DJI) to its longest losing streak in over a year, Stock Options Made Easy “Earnings Predictions” members managed to profit from four(4) out of six(6) options trades recommended for consideration.

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!

Follow-up On Extra Trades To Consider Based on the Week Before…..

There were two trades that went in opposite directions to our predictions, but were up before reporting earnings so, for those traders that were still holding these trades, or for those wishing to enter the trades then, further options trades were recommended for consideration…..The Result….

1.      H & R Block Inc (NYSE:HRB) – option trade has hovered around the same entry cost most of last week.

2.      Adobe Systems Incorporated (NASDAQ:ADBE) – on Monday morning shot to over $8.00; which means that 100% potential profit was available to the astute trader.


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

DATE TRADE GAIN
June 19, 2018 ORCL JULY 20 2018 45.000 PUT P.P: 191%
June 20, 2018 MU JULY 20 2018 57.500 PUT P.P: 20% (as advised - exit before report)
June 20, 2018 MU JULY 20 2018 60.000 CALL P.P: 45.5%
June 22, 2018 KMX JULY 20 2018 75.000 CALL P.P: 373%

TOTAL potential profit for these 4 trades= P.P: 629.5%.

Even deducting a total loss on the other two options trades – FDX and RHT – you would be 429.5% potential profit in front following the strategy mentioned below –“Trading Capital Management”! Obviously these two trades could make a comeback, similar to Etsy (.....read article.....), or even give back some of the capital used to purchase the options.

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:

Tuesday, June 26

JinkoSolar Holding Co., Ltd. (NYSE: JKS), a solar product manufacturer with operations based in Jiangxi Province and Zhejiang Province in China, will report earnings before the market opens.

The consensus earnings estimate is $0.07 per share on revenue of $714.55 million. Consensus estimates are for earnings to decline year-over-year by 75.00% with revenue decreasing by 14.86%.

Recently, solar stocks plummeted caused by China cutting solar incentives for the rest of 2018, which could reduce the country's solar installations by 30%-40% in 2018, a big deal considering China installed about half of all solar panels worldwide in 2018..........

……..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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