Etsy Outperforms!

Time To Exit?

“Earnings Prediction” Members Already Up 209% Potential Profit On This Options Trade!

by Ian Harvey

August 08, 2018





Here is an update of Etsy's options call trade. This options trade was recommended to “Earnings Prediction” Members on Monday, August 06, 2018, based on Etsy’s growth prospects looking bright as consumer preferences shift toward online shopping.



The Trade……

…….from……“Earnings Predictions” for the Week Beginning August 06, 2018.

The Details……..

Brooklyn, NY-based Etsy Inc. (NASDAQ:ETSY), a commerce platform to make, sell, and buy goods online and offline, primarily in the United States, is expected to report earnings after the market closes. For the second quarter, analysts expect its revenue to rise 25% to $127.1 million. However, its adjusted EPS are expected to fall 60% to $0.04.

ETSY went through rocky times as the original CEO left and the company had to do cost-cutting, including layoffs. And the turnaround has worked. Shares are up 112% in 2018. They now trade with a forward P/E of 79 but earnings are expected to rise 42% in 2018.

Prior to the earnings release, 56.0% of the nine analysts covering Etsy stock have recommended “buys” as of July 27. Analysts are bullish; as the company’s strategic efforts have yielded the desired results.

Etsy’s growth prospects look bright as consumer preferences shift toward online shopping. The company has been making its service more transparent by adding more accurate information on shipping dates and information on returns and exchanges. It’s also increasing its marketing spending to expand its customer base and simplifying the search process by deploying machine learning and AI technology along with human curation. It has collaborated with customer service software company Zendesk to set up an improved help center.

Etsy has been pumping ample resources into improving its operational efficiency and building infrastructure. Recently, Etsy hiked its seller transaction fee—which is also applicable to shipping costs—to 5% from 3.5%. It’s looking to increase its investments in marketing and product innovation, and it expects the higher fee to help. It’s looking at increasing its 2017 marketing spending by 40%.

The Trade……..

Option trade to consider: Buy the ETSY SEPT 21 2018 45.000 CALL at approximately $2.10.

Earnings Report and Movement Expectations……

Etsy Inc. (NASDAQ:ETSY) announced its latest quarterly earnings results late in the day Monday, posting revenue that was better than analysts were calling, sending shares soaring after hours, as much 8.77% after already being up 2.14% during day trading.

The e-commerce site for handmade and vintage items said that for its second quarter of fiscal 2018, it brought in net income of $3.4 million, or 3 cents per share. Wall Street said in its consensus estimate that it was calling for the company to amass net income of 4 cents per share.

Etsy did not perform as well as it did in the year-ago quarter when it tallied up net income of 10 cents per share. The company added that it brought in revenue of $132.4 million, which was a 30.2% improvement over the $101.7 million it brought in during the year-ago quarter.

Moving Forward…..

Analysts were calling for the company to rake in sales of $127.1 million. For the full fiscal year, Etsy increased its revenue guidance to now be in the range of $587 million to $596 million, which is $5 million higher than its previous range of $582 million to $591 million in sales.

"We've made meaningful progress to enable significantly more investment in the Etsy platform, and are leveraging our strong financial position to support what we believe is a long runway for future growth," said CFO Rachel Glaser.

The company also increased its outlook for gross merchandise sales. In June, the site increased its transaction fees that it collects from sellers to 5% from 3.5%.

The Profits

So, for “Earnings Prediction” members, who managed to execute this trade recommended by Stock Options Made Easy; and exited after the market opened yesterday, would have taken potential profits of 209%.

Entering the option trade at a cost of $2.10 or less; and going as high as $6.50; one options contract would provide a profit of $440; or 209% Potential Profit.


If you have not already taken profits at this stage, it is always possible that further profit can be made from this call options trade, but as they say, “a bird-in-the-hand is better than two-in-the-bush”.

There are several choices to be decided now……

  • ….. take the profits now,
  • …..take half the profits, and then take the rest of profits on further stock price increase,
  • …..take half the profits, and then take the rest of profits at expiry, or
  • …..wait until expiry.

Sometimes it is our approach to predict whether a company will beat or miss estimates, whether the stock will appreciate or depreciate as a result and what strategies investors and traders can use – such as found with the “Earnings Predictions Program”. This type of prediction is based on thorough investigation and fundamentally based research, and the results have been very exceptional.

Strategies to Consider……

"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?” .....READ MORE.....


"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……

Our proven track record says it all!!

Members of Stock Options Made Easy are provided with an extensive reason as to which direction a stock will move after earnings, followed up by a recommended options trade.

If you not a member and interested in being part of this profitable action just CLICK HERE.

Other Membership Options…….

If you interested in "Earnings Predictions" just click here……

or "Mentorship Program" here....

Best of Trading,
Ian Harvey
Director of 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.

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