Earnings Predictions
for the
Week Beginning November 05, 2018

Still Well In-Front
Despite Market Turbulence!

And, Another Great Week Coming Up!

by Ian Harvey

November 05, 2018

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

The Dow wrapped up its best week since June, and the Nasdaq enjoyed its best week since May. The S&P fared even better, having its best week since March.

Catalysts for the past week were the upbeat tweet on U.S.-China trade talks from President Donald Trump and some positive feedback from earnings, particularly FaceBook, although Apple was a drag on the stock market momentum.

For the week, the Dow Jones Industrial Average (DJI) finished up 2.4% at 25,270.83. However, this wasn't enough to save the Dow from its worst monthly loss since January 2016.

The S&P 500 Index (SPX) was up 2.4% at 2,723.06 for the week; and the Nasdaq Composite (IXIC) up 2.7% for the week at 7,356.99.

Moving Ahead…..

Looking ahead, the first full trading week features a number of notable earnings reports, including results from Walt Disney (DIS) and Etsy (ETSY). Plus, the November Fed meeting kicks off in the wake of a strong October jobs report, though no rate hikes are expected this time around. However, the most anticipated event is the midterm election vote next Tuesday, Nov. 6, which has historically been positive for stocks.


CONTROL OF EMOTIONS AND LESS PANIC WILL HELP YOUR PROFIT MARGIN!

Reviewing the Earnings Predictions from Last Week…..


“EARNINGS Profits for LAST WEEK”!

DATE TRADE GAIN
October 29, 2018 MDLZ DEC 21 2018 41.000 CALL P.P: 113%
October 23, 2018 GE DEC 21 2018 11.000 PUT P.P: 208%
October 24, 2018 IQ DEC 21 2018 22.500 CALL P.P: 0%
October 25, 2018 AAPL DEC 21 2018 225.000 CALL P.L: -49%
October 25, 2018 XOM DEC 21 2018 75.000 PUT P.L: -56%

TOTAL potential profit for these 5 trades= P.P: 216%.

NOTE: I have previously mentioned that it is often a great strategy to exit an earnings predictions trade before earnings if there is a substantial profit to be made. This was again true for last week for International Business Machines Corp. (NYSE:IBM) as noted in the chart below…..

“Taking Profits on Apple Inc. before EARNINGS LAST WEEK”!

DATE TRADE GAIN
October 25, 2018 AAPL DEC 21 2018 225.000 CALL P.P: 22%
October 25, 2018 XOM DEC 21 2018 75.000 PUT P.P: 22.5%

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”.

Options Trades to Consider Based on Expected Earnings Reports:

Monday, November 05

CVS Health Corp (NYSE:CVS), formerly CVS Caremark Corporation, is a pharmacy healthcare provider in the United States, will reports third-quarter earnings before the market opens. The consensus earnings estimate is $1.71 per share on revenue of $47.19 billion; but the Whisper number is $1.74 per share. The company's guidance was for earnings of $1.68 to $1.73 per share. Consensus estimates are for year-over-year earnings growth of 14.00% with revenue increasing by 2.18%.

During the same period last year the company earned $1.50 and the stock is down 0.8% on the year.

Looking a bit further down the road, CVS' fiscal 2018 revenues are projected to climb 2.23% to hit $188.88 billion. Meanwhile, CVS fiscal 2019 revenues are expected to jump 4.4% over our 2018 estimate.

CVS has a strong earnings track record of posting better than expected profits and the street expects another beat.

CVS was showing a lot of strength before the overall market pulled back in October. The stock traded lower in sympathy to the broad sell off but shares have already started to recover as the market appears to have found its footing, with profits and sales rising.

As well, October marked what could prove to be a pivotal point in the company's history after the U.S. Department of Justice allowed CVS to move forward with its proposed acquisition of Aetna. CVS said it remains on track to close its $70 billion deal in the early part of the fourth quarter.

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

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DON'T MISS OUT - MORE TO COME!

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”.

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!

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.

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!

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……


”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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