by Ian Harvey
October 13, 2018
A Quick Review of Last
Last week was a “bit of a shocker!”
However, U.S. stocks managed to finish Friday
comfortably higher, after the brutal two-day sell-off.
These two disastrous and panic-filled days are outlined in the articles…..
For the week, the Dow Jones Industrial Average (DJI) finished
down 4.2% at 25,339.99, its
worst weekly performance since late March.
The S&P 500 Index (SPX) was down 4.1% at 2,767.13; and the Nasdaq Composite (IXIC) down 3.7% for the week at 7,496.89. Also, both indexes posted their worst weekly performances since March.
Volatility will likely
continue through the current earnings season, which in some ways is not
Expectations for this
earnings season are high, with the S&P 500 expected to grow earnings by 19
Many analysts believe that the
market still has room to run higher. This appears to be a correction more than
There is no flashing red light
suggesting a bear market. Economic indicators are still sound with growth above
potential in the US, while on financial market indicators, the picture is more blurred
but not scary. And U.S. monetary conditions are far from tight with fiscal
stimulus still in play. Debt levels look healthy,
and there aren't any initial public offerings with excessive valuations.
Based on past history a
major bear market requires a recession in the U.S., but that is not happening!
CONTROL OF EMOTIONS AND LESS PANIC ARE REQUIRED!
So, we can probably 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…..
Considering the week we have just had, our earnings predictions are looking reasonable! If the market continues to recover in the week ahead Helen of Troy Limited (NASDAQ: HELE), Fastenal Company (NASDAQ:FAST) and Citigroup Inc (NYSE: C) should move up again as there is still plenty of time before the options trades expire.
“EARNINGS Profits for LAST WEEK”!
|October 09, 2018||HELE NOV 16 2018 130.000 CALL||P.P: 60%|
|October 09, 2018||WFC NOV 16 2018 52.500 PUT||P.P: 87%|
The Decision Is Yours!
Options Trades to Consider Based on Expected Earnings Reports:
Tuesday, October 16
Group Inc. (NYSE:UNH) will report earnings before the market opens. UnitedHealth is expected to report earnings of $3.29 a share on
sales of $56.4 billion. In the same period a year ago the company posted
earnings of $2.66 a share on sales of $50.3 billion. The stock has risen 3.7%
since the company last reported earnings on Jul. 17.
UnitedHealth Group is seeing favorable earnings estimate revision
activity as of late, which is generally a precursor to earnings beat. In fact,
the Most Accurate Estimate for the current quarter is currently at $3.31 per
share for UNH, up from $3.29.
Expect consolidated revenues to grow at UnitedHealth Group Inc. Revenue
growth at both UnitedHealthcare and Optum segments is expected to aid the
company’s third-quarter earnings results, offset by increased expenses due to
additional investments and operating costs.
UnitedHealthcare segment is expected to see revenue growth from its Medicare and Retirement sub-segments on the back of higher individual product sales and employer-sponsored group retiree plans. The Consensus Estimate for the segment’s revenues is $44.6 billion, which translates into year-over-year growth of 12.7%.
……..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.