by Ian Harvey
September 29, 2018
A Quick Review of Last
Both the Dow and S&P 500 had losses for the week but managed
to finish September in the black, though, with the S&P logging its sixth
straight monthly advance.
But the Nasdaq, on the other-hand, scored a gain for
the week, but could not avoid a monthly loss.
All three benchmarks finished with gains for the third
quarter, including the S&P 500's biggest quarterly advance since December
For the week, the Dow finished down 1.6% at 26,458.31; although it gained 1.9% for the month and 9% for the third quarter.
The S&P 500 was also down 0.5 percent at 2,913.98. For the month and quarter, it gained 0.4% and
But, the Nasdaq Composite went in
the opposite direction; finishing the week up 0.7% to settle at 8,046.35. But lost 0.8% for
the month; and it gained 7.1% in the third quarter.
Stocks are entering what is
typically one of the best times of the year for the market, after making a
surprisingly strong showing in the often choppy third quarter.
From a fundamental perspective, there's nothing specific to the fourth quarter that is particularly concerning as the outlook seems pretty constructive. The stock market still looks to be bullish as the profit cycle in the U.S. remains healthy.
Expect the stock market to continue its upward trajectory for the next few months…..read the article “The Stock Market Is Expected To Continue Higher!”
Reviewing the Earnings Predictions from Last Week…..
“EARNINGS Profits for LAST WEEK”!
|September 26, 2018||KMX OCT 19 2018 75.000 PUT||P.P: 117%|
|September 26, 2018||BBBY OCT 19 2018 17.500 PUT||P.P: 644%|
TOTAL potential profit for
these 2 trades= P.P: 761%.
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 as noted in the chart below…..
“Taking Profits on McCormick & Company, Incorporated (NYSE:MKC) before EARNINGS LAST WEEK”!
|September 12, 2018||MKC OCT 19 2018 135.000 CALL||P.P: 39%|
The Decision Is Yours!
Options Trades to Consider Based on Expected Earnings Reports:
Monday, October 01
Stitch Fix Inc (NASDAQ:SFIX), an online personalized styling service company, the wave of the future with what it is doing with fashion and artificial intelligence, will report earnings after the market closes. According to the latest Consensus Estimates, analysts expect Stitch Fix to report earnings of $0.04 per share and revenue of $318.90 million. Shares are up over 100% in the six months leading up to the report.
……..Read the rest of the report to see what options trades we are considering......
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.
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?”
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.