by Ian Harvey
November 11, 2018
A Quick Review of Last
Week’s Market…..
The past week saw the blue chips showing strength, particularly
with the big-cap energy name Chevron CVX) getting the bullish ball rolling on
Monday. Also, Wall Street's positive reaction to midterm election results in
the U.S. created bigger tailwinds for the stock market.
Even though Thursday's Fed announcement and Friday's inflation
data – as well as oil prices falling into bear-market territory -- the Dow,
S&P 500 Index (SPX), and Nasdaq Composite (IXIC) had their second straight
week of gains.
For the
week, the Dow Jones Industrial Average (DJI) finished up 2.8% at 25,989.30.
The S&P 500 Index (SPX) was up 2.1% at 2,781.01 for the week; and the Nasdaq Composite (IXIC) up 0.7% for the week at 7,406.90.
Moving Ahead…..
Looking ahead, Wall Street will be again busy, with several
Fed speakers presenting. As well, earnings from Walmart (WMT), Nvidia (NVDA),
and a number of cannabis companies are due.
The decline in oil may be another opportunity for consumers and for business, as you will pay less at the pump and industry's paying less as well. The last time that this occurred - mid-1984, according to Refinitiv data – it was proven that cheaper fuel is actually good for 90 percent of the S&P 500 as long as it's caused by excess supply; which is the case now.
CONTROL OF EMOTIONS AND LESS PANIC WILL HELP YOUR PROFIT MARGIN!
Reviewing the Earnings Predictions from Last Week…..“EARNINGS for LAST WEEK”! | |||||||
---|---|---|---|---|---|---|---|
DATE | TRADE | GAIN | |||||
November 06, 2018 | CVS DEC 21 2018 75.000 CALL | P.P: 197% | |||||
November 06, 2018 | TWLO DEC 21 2018 75.000 CALL | P.P: 283% | |||||
November 07, 2018 | WYNN DEC 21 2018 110.000 PUT | P.P: 93% | |||||
November 08, 2018 | ATVI DEC 21 2018 70.000 CALL | P.L. -99% | |||||
November 06, 2018 | DIS DEC 21 2018 115.000 CALL | P.P: 70% |
TOTAL potential profit for these 5 trades= P.P: 544%.
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:
Tuesday, November 13
The Home Depot, Inc. (NYSE:HD), the leader in the
home-improvement retail space, is expected to report earnings before the market
opens. The consensus earnings estimate is for $2.27 per share on revenue of
$26.25 billion; but the Whisper number is for $2.31 per share. Consensus
estimates are for year-over-year earnings growth of 23.37% with revenue
increasing by 4.89%.
The Federal Reserve has now raised rates eight times since
December 2015, which has caused investors to be concerned about the housing
market, and all housing related sectors such as home improvement. HD was doing
OK through the summer, but the stock began turning lower in September, and
while it has managed to rally a bit with the overall market after the October
sell off the stock remains well below its all-time high set in the first part
of September.
Home Depot has a solid earnings track record and has posted
better than expected quarterly earnings each of the last eight quarters; and the
street is looking for another earnings beat.
Home Depot stock has climbed over 50% in the last three years, with much of that expansion coming in the last 24 months. However, the last year has not been as kind to the home improvement retail powerhouse.
……..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.