Earnings Predictions
for the
Week Beginning September 17, 2018

Another Great Week!

by Ian Harvey

September 15, 2018

Share

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

Despite reports that President Donald Trump wants to move forward with a plan to initiate tariffs on another $200 billion in Chinese goods pulling the major indexes off their highs on Friday, all three indexes managed weekly gains -- whilst the SPX having a fifth straight daily gain, which is the longest such streak since mid-February.

For the week, the Dow finished up 0.9% at 26,154.67.

The S&P 500 was also up 1.1 percent at 2,904.98.

And, the Nasdaq Composite joined the group; finishing the week up 1.4% to settle at 8,010.04.

Moving Ahead…..

The stocks market may aim for new highs in the week ahead, even though there are some mixed cross currents impacting the market, particularly the trade issues with both China and Canada.

September is usually a weak time for stocks, but the market has defied many of the past trends this year, such as…..

  • August is bad for stocks and
  • the "sell in May"

…..which has been quite the opposite!

If the S&P 500 manages to close above 2,916 this week, expect more upside to occur; a fourth-quarter rally is possible.

There are some economic reports, including existing home sales Thursday and the Philadelphia Fed survey, but not much in the way of major news on the economy.

Reviewing the Earnings Predictions from Last Week…..


“EARNINGS Profits for LAST WEEK”!

DATE TRADE GAIN
September 10, 2018 SONO SEPT 21 2018 17.500 PUT P.P: 256%
September 11, 2018 FRAN SEPT 21 2018 6.000 PUT P.P: 462%
September 13, 2018 ADBE SEPT 21 2018 265.000 CALL P.P: 143%
September 14, 2018 PLAY SEPT 21 2018 60.000 CALL P.P: 54%

TOTAL potential profit for these 4 trades= P.P: 915%.

However, Pivotal Software Inc. (NYSE: PVTL) had substantial profits before earnings, but Kroger Co (NYSE:KR) 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 on Pivotal Software before EARNINGS LAST WEEK”!

DATE TRADE GAIN
September 12, 2018 PVTL SEPT 21 2018 28.000 CALL P.P: 115%

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 17

Oracle Corporation (NYSE:ORCL), a provider of products and services that address all aspects of corporate information technology (IT) environments, including application, platform and infrastructure, will report earnings after the market closes. Oracle is expected to post adjusted earnings of 68 cents a share on revenue of $9.24 billion. These results would represent year-over-year growth of 9.7% and 0.9%, respectively.

Oracle has seen its first-quarter EPS projection sink by $0.04 over the last 90 days, while also seeing its quarterly and full-year earnings estimate revision activity trend completely downward.

It hasn’t been smooth sailing for the historic tech company over the last year. Oracle shares are up just 5% on the year as investors continue to worry that the company is losing market share to key competitors.

Factors affecting Oracle’s advance…..

  • Oracle announced just recently that top executive Thomas Kurian has taken a leave of absence. Kurian, who is the president of product development, stepped away from Oracle amid differences with co-founder Larry Ellison.
  • Despite expanding its foothold in the cloud space, the presence of already established players like Amazon and Microsoft in both the PaaS and IaaS may remain a potential headwind.

……..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 17, 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