Earnings Predictions
for the
Week Beginning October 29, 2018

4 Out Of 5 Successful Trades 
Despite Market Turbulence!

And, Another Great Week Coming Up!

by Ian Harvey

October 27, 2018

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

Last week saw U.S. stocks fluctuate daily. Seven of the 11 S&P 500 sectors are down at least 10 percent from their 52-week highs, including energy, materials and financials. Around three quarters of the index's stocks are also in a correction.

Disappointing earnings from key tech companies are overshadowing strong economic data. Amazon fell 7.8 percent after the company released its latest quarterly results on Thursday. Alphabet shares, meanwhile, dropped as much as 5.6 percent before closing 1.8 percent lower. Earnings for both companies topped analyst estimates, but revenues fell short.

The "high expectations" for this earnings season are not coming in as great as people had suspected!

For the week, the Dow Jones Industrial Average (DJI) finished down nearly 3.0% at 24,688.31.

The S&P 500 Index (SPX) was down 3.9% at 2,658.69 for the week; and the Nasdaq Composite (IXIC) down 4.1% for the week at 7,167.21.

The Nasdaq slumped to its fourth straight weekly decline, its longest such streak since August 2017.

Moving Ahead…..

Guggenheim's Scott Minerd says the market is going through a "classic season adjustment" and has yet to peak.

Minerd anticipates a 15 to 20 percent rally before the bull market ends, tweeting Friday afternoon that "stocks are cheap."

"History shows us that when we have these fall corrections, the market bottoms 50 percent of the time in October," he noted. "If it doesn't bottom in October, about 30 percent of the time in November."

As for trade war fears weighing on stocks, Minerd said the Trump administration is "deeply concerned" about the behavior of the market.

"It's probably going to soften their position and make them more willing to try to cut a deal with China," he said.


CONTROL OF EMOTIONS AND LESS PANIC ARE REQUIRED!

Reviewing the Earnings Predictions from Last Week…..


“EARNINGS Profits for LAST WEEK”!

DATE TRADE GAIN
October 23, 2018 MMM NOV 16 2018 195.000 PUT P.P: 239%
October 23, 2018 VZ NOV 16 2018 55.000 CALL P.P: 126%
October 24, 2018 BA NOV 16 2018 370.000 CALL P.P: 33%
October 25, 2018 F DEC 21 2018 9.000 PUT P.L: -7.5%
October 25, 2018 MSFT NOV 16 2018 110.000 CALL P.L: -6.5%

TOTAL potential profit for these 5 trades= P.P: 384%.

Considering the week we have just had, our earnings predictions are looking pretty good!

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, October 29

Mondelez International Inc (NASDAQ: MDLZ), a snack manufacturing company -- Oreo and Cadbury maker -- will report earnings after the market closes. The market expects Mondelez to deliver a year-over-year increase in earnings on lower revenues when it reports results for the quarter ended September 2018.

This maker of Oreo cookies, Cadbury chocolate and Trident gum is expected to post quarterly earnings of $0.61 per share in its upcoming report, which represents a year-over-year change of +7%.

Revenues are expected to be $6.34 billion, down 2.9% from the year-ago quarter.

Most of the analysts covering Mondelēz have maintained “buy” ratings on its stock.  Analysts have a consensus target price of $49.21 per share on MDLZ stock, implying an upside potential of over 20%.

Barring its near-term hiccup, Mondelēz is expected to end 2018 on a strong note. Analysts expect the company to report healthy net and organic sales growth. Innovation-driven new products, expanded distribution, well-planned partnerships, and continued strength in its power brands are expected to drive its top line.

As well, higher pricing and productivity savings are expected to support MDLZ’s margin growth. The company’s bottom line growth is also expected to mark strong growth in 2018 led by improved sales, higher margins, and a lower effective tax rate. Meanwhile, a lower outstanding share count should further cushion the company’s bottom line.

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

Not a Member yet?.........SIGN UP

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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