Earnings Predictions
for the
Week Beginning September 10, 2018

Exiting Options Trades BEFORE Earnings Reports Was Profitable Last Week!

by Ian Harvey

September 09, 2018

Share

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

Not a great week for the major indices. Technology stocks had their worst week since March, and they could remain in the crosshairs, particularly if the Trump administration unveils new tariffs on China.

For the week, the Dow finished down 0.2% at 25,916.54.

The S&P 500 was also down 1.0 percent at 2,871.68.

And, the Nasdaq Composite joined the downers; finishing the week down 2.5% to settle at 7,902.54.

Moving Ahead….. 

Strategists say inflation and trade are two major themes markets will have to navigate in the week ahead, after August's surprise jump in wage growth and as investors await the next move from Washington on the trade front.

The better than expected jobs report on Friday was followed by another warning from Trump to China. The president told reporters Friday that he was "ready" to place tariffs on another $267 billion worth of Chinese goods on top of the $200 billion worth of goods already under scrutiny.

Consistently higher inflation could help reinforce the Fed's rate-hiking plans, and markets will be particularly alert to both producer and consumer inflation reports in the week ahead.

The result of this may be a further sell-off of the stock market this week!

Reviewing the Earnings Predictions from Last Week…..


“EARNINGS Profits for LAST WEEK”!

DATE TRADE GAIN
September 06, 2018 FIVE SEPT 21 2018 120.000 CALL P.P: 326%
September 06, 2018 OKTA SEPT 21 2018 65.000 CALL P.P: 494%

TOTAL potential profit for these 2 trades= P.P: 820%.

However, Workday Inc. (NASDAQ:WDAY), HD Supply Holdings Inc (NASDAQ: HDS) and Palo Alto Networks Inc. (NYSE:PANW) had substantial profits before earnings, but RH (NYSE:RH) was a bust.

Overall, if played correctly, the week would have been very successful.

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
September 04, 2018 WDAY SEPT 21 2018 160.000 CALL P.P: 127%
September 05, 2018 HDS SEPT 21 2018 45.000 CALL P.P: 57%
September 06, 2018 PANW SEPT 21 2018 240.000 CALL P.P: 23%

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:

Monday, September 10

Consumer discretionary company Sonos Inc (NASDAQ: SONO) which designs, develops, manufactures, and sells multi-room audio products primarily for use in private residences in the United States and internationally, will report earnings after the market closes. The consensus estimate is for a loss of $0.22 per share on revenue of $208.16 million; but the Whisper number is for ($0.18) per share.

Sonos hasn't flopped as an IPO, but it's far from being one of this year's more scintillating rookies. It was hoping to hit the market at a per-share price between $17 and $19 in early August, settling for $15 in light of lukewarm investor demand.

Shares of Sonos have been assigned a consensus rating of “Buy” from the six brokerages that are currently covering the stock. Three research analysts have rated the stock with a hold rating and three have issued a buy rating on the company.

However, at the moment trading volume is decelerating and the stock's volatility has softened...............

……..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


Share



”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.



Back to Stock Options Made Easy Home Page from Earnings Predictions for the Week Beginning September 10, 2018



Search Stock Options
Made Easy



Enjoy Relaxed or Fast-Paced Trading? Choose your Membership Style...

Whether you prefer to take a laid-back approach to your trading,

or to charge ahead in your options trading,

 Stock Options Made Easy Armchair Trader and Cut-to-the-Chase Trader Memberships put everything you need to succeed at your fingertips for just  $39 or $79 per month.







Subscribe to our FREE
newsletter for all the latest options news!


Enter Your Email Address

Enter Your First Name