Etsy Inc. Soars After Turnaround!

Another Big Winner For Members of Stock Options Made Easy!

Etsy Inc. (NASDAQ:ETSY) Option Calls Provide 300% Potential Profit!

by Ian Harvey

March 01, 2018





Here is an update of Etsy’s winning options call trade after reporting earnings. This options trade was recommended to “Cut-To-The-Chase” Members & “Mentorship” Members of Stock Options Made Easy, on Tuesday, February 27, 2018 -- in the article ““Cut-To-The-Chase” Recommendations - Week Beginning Monday, February 26, 2018”; which produced excellent potential profits of 300% within 24 hours after executing the trade!


The Recommendation……

…….from ““Cut-to-the-Chase” Recommendations - Week Beginning Monday, February 26, 2018.”

The Details……..

Etsy Inc. (NASDAQ:ETSY), operating a marketplace where people around the world connect, both online and offline, to make, sell and buy goods, is expected to report Q4 results after the market closes today, Tuesday 27 February. The consensus estimate looks for per-share profit of 9 cents, vs. a year-ago loss of 19 cents a share, with revenue up 21% to $133 million.

Etsy struggled through 2017. The company experienced two waves of layoffs and a change in its CEO after activist investors sensed the need for a shakeup. The moves seem to have worked, as the stock has risen 82% since May when activist investors like Black-and-White Capital first acquired a stake.

And it is expected that the stock will continue moving higher through January in anticipation of the company's fourth-quarter earnings report.

This year the company has provided tools for its merchants to help shoppers find gifts or items on sale and get fast or free delivery. Holiday sales experienced their biggest spike since 2011 for ETSY and that online sales were up 18% during the period, according to Mastercard's ShopperTrak.

That's a bullish sign for Etsy to top estimates in the key holiday-quarter report coming up.

The Trade……..

** OPTION TRADE: Buy ETSY APRIL 20 2018 22.500 CALL at approximately $1.00 each.

The Result………

Shares of online crafts retailer Etsy Inc. jumped 24.1 percent on Wednesday after it reported fourth-quarter results that surpassed analyst expectations, showing signs of a turnaround since it brought on a new chief executive last year.

Etsy reported fourth-quarter revenue of $136.3 million, up 23.6% year over year and ahead of a consensus analyst estimate for revenue of about $133 million. Earnings per share swung from a loss of $0.19 in the year-ago quarter to a profit of $0.15 when adjusted to exclude a one-time benefit from the U.S. Tax Cuts and Jobs Act of 2017. Analysts, on average, were expecting adjusted earnings per share of $0.09.

Gross merchandise sales (GMS) surpassed $1 billion for the first time and increased at an accelerated rate. GMS increased 17.8% year over year, to $1.02 billion. This is up significantly from 13.2% year-over-year GMS growth in Q3.

Positive sentiment toward the stock from investors on Wednesday is likely a reflection of Etsy posting accelerating growth across a range of key metrics , as well as posting higher-than-expected revenue, adjusted earnings per share, and guidance.

Future Outlook……                                

For 2018, the company projected growth of 14 to 16 percent in gross merchandise sales and revenue growth of 21 to 23 percent, also topping analysts' expectations.

"We are well-positioned for a strong 2018 and our revenue and adjusted EBITDA guidance demonstrate that we believe we can sustain and build upon our 2017 progress," said Etsy CFO Rachel Glaser.

End Result……..

The shares rose as high as $26.23, their highest level since April 2015, the month Etsy went public, before closing at $25.31.

The Profit……..

So, for those traders who managed to execute this trade recommended for consideration by Stock Options Made Easy; a nice tidy potential profit of 300% within a short period of time.



Now is the time to decide if it is worth continuing to hold this trade or exit on excellent profits. It is nearly always prudent to exit a trade before an unknown incident occurs that could rattle a sound profit, and this is a fine example of such a situation.

As you would have by now realized, many of our trades are based on earnings predictions. This is not to say all trades recommended to members follow this pattern, but during earnings season this strategy has been very profitable.

Our approach is 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. This type of prediction is based on thorough investigation and fundamentally based research, and the results have been very exceptional.

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.

What To Do Now…….

If you interested in being part of this profitable action just click 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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