by Ian Harvey
October 06, 2018
A Quick Review of Last
Friday's decline came a day after the Dow posted its worst day since August
10. The S&P 500 and Nasdaq also fell sharply in Thursday's session. And the S&P 500 posted its worst week in nearly a month.
For the week, the Dow finished down 0.04% at 26,447.05.
But, the Nasdaq Composite suffered
the worst for the week, down 2.3% to settle at 7,788.45.
It may be beneficial for
investors to consider moving more towards defensive sectors like consumer staples,
health care and utilities for the immediate future.
But, a year-end rally
should be on-the-cards. The sell-off last week was
a normal progression of the bull rally and it would not be wise to panic over
the situation at this stage as the data remains strong, the U.S. economy is
sound, and there is no recession apparent.
There is some speculation that the continuing trade war with China will pick up steam on Monday, as there is an expectation that President Donald Trump will announce another wave of tariffs on Chinese goods in response to a report from the Pentagon saying China represents a "significant and growing risk" to military product manufacturing.
Looking ahead however, 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”!
|October 03, 2018||AYI OCT 19 2018 155.000 PUT||P.P: 263%|
|October 04, 2018||STZ OCT 19 2018 220.000 CALL||P.P: 78%|
TOTAL potential profit for these 2 trades= P.P: 341%.
Options Trades to Consider Based on Expected Earnings Reports:
Tuesday, October 02
Helen of Troy Limited (NASDAQ: HELE), a leading
consumer products player, will report earnings before the market opens.
Analysts expect this personal and household products company to post quarterly
earnings of $1.67 per share in its upcoming report, which represents a
year-over-year change of +1.2%. Revenues are expected to be $350.80 million,
down 7.3% from the year-ago quarter.
Robust online sales and digital-marketing efforts should continue
benefiting Helen of Troy. Online sales surged 30% year over year and
represented nearly 16.2% of Helen of Troy’s top line in the first quarter of
fiscal 2019. Management plans to make further investments in this arena, in an
attempt to keep pace with the evolving consumer environment.
Helen of Troy continues to make significant investments in the portfolio of Leadership Brands such as OXO, Honeywell, Braun, PUR, Hydro Flask and more. Leadership Brands’ sales jumped 14.7% year over year and formed roughly 79% of Helen of Troy’s consolidated sales in the first quarter.
……..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.