Earnings Predictions
for the
Week Beginning September 03, 2018

Exiting Options Trades BEFORE Earnings Reports Was Profitable Last Week!

by Ian Harvey

September 03, 2018

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

The U.S. stock market started the week strong, as a trade deal between the U.S. and Mexico sparked a major upside.  However, Tesla continued its downward spiral as Elon Musk continued his tweeting.

The S&P 500 and Nasdaq set new record highs, particularly with tech stocks surging.

The positive momentum hit a roadblock late Thursday, though, on reports President Donald Trump is preparing to go ahead with a new round of Chinese tariffs.

For the week, the Dow finished up 0.7% at 25,964.82; and for August, the Dow gained 2.2%.

The S&P 500 was also up 1.0 percent at 2,901.52; and for August3.0%.

Meanwhile, the Nasdaq Composite set a record high moving above the round 8,000 mark for the first time ever; finishing the week up 2.1% to settle at 8,109.54; and for August a gain of 5.7%.

Moving Ahead…..

Markets are closed today, but plenty is happening for the rest of the week. As well as plenty of jobs data to digest, several Fed officials are set to speak. And there is a continuation of signs suggesting that this rally could continue throughout September.

Reviewing the Earnings Predictions from Last Week….. 

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 before EARNINGS for LAST WEEK”!

DATE TRADE GAIN
August 27, 2018 PAHC SEPT 21 2018 55.000 CALL P.P: 116%
August 28, 2018 BOX SEPT 21 2018 27.000 CALL P.P: 40%
August 29, 2018 CRM SEPT 21 2018 155.000 CALL P.P: 60%
August 30, 2018 LULU SEPT 21 2018 140.000 CALL P.P: 19%
August 30, 2018 ZUO SEPT 21 2018 35.000 CALL P.P: 46%

TOTAL potential profit for these 5 trades= P.P: 281%.

However, athleisure giant, Lululemon Athletica inc. (NASDAQ:LULU), after earnings, provided potential profits of 226%. Since the return at the stage before earnings, this would have been worth holding until after the earnings report. Therefore, taking the other 4 trades before earnings and then LULU after earnings, the potential return would now be 488%.

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!

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”.

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……

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!

Options Trades to Consider Based on Expected Earnings Reports:

Tuesday, September 04

Workday Inc. (NASDAQ:WDAY), the provider of cloud-based solutions for human capital management, will report after the market closes. Wall Street expects the company to earn 26 cents per share on revenue of $663.09 million. But the Whisper number is for $0.30 per share. This compares to the year-ago quarter when earnings came to 24 cents per share on revenue of $525.32 million.

Consensus estimates are for year-over-year earnings growth of 36.84% with revenue increasing by 26.17%. Overall earnings estimates have been revised higher since the company's last earnings release. Workday's fiscal year earnings are projected to soar over 23%.

Workday has grown to become a top player not only in Cloud applications for financial management, but also areas such as human capital management, payroll and analytics. ..............

……..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!

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.

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.


”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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