Exiting Options Trades BEFORE or AFTER Earnings Reports Comparison!

When Is The Best Time?

by Ian Harvey

June 10, 2018

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Different Strategies Based On Exiting Earnings Predictions Options Trades…..

Let us review the trades for last week and see if it was better to exit before the earnings reports or to hold the trade until after the report.

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.

SO….looking at the following tables is an exit before or after an earnings report an appropriate decision?

“EARNINGS PREDICTIONS for LAST WEEK” - TAKING PROFITS BEFORE EARNINGS REPORTS!

DATE TRADE GAIN
June 04, 2018 COUP JULY 20 2018 55.000 CALL P.P: 37%
June 05, 2018 YY JUNE 15 2018 130.000 CALL P.P: 55%
June 06, 2018 SIG JULY 20 2018 40.000 PUT P.P: 0%
June 06, 2018 FIVE JUNE 15 2018 75.000 CALL P.P: 438%
June 07, 2018 AVGOJUNE 15 2018 260.000 CALL P.P: 120%


“EARNINGS PREDICTIONS for LAST WEEK” - TAKING PROFITS AFTER EARNINGS REPORTS!

DATE TRADE GAIN
June 04, 2018 COUP JULY 20 2018 55.000 CALL P.P: 163%
June 05, 2018 YY JUNE 15 2018 130.000 CALL -78.5%
June 06, 2018 SIG JULY 20 2018 40.000 PUT -91%
June 06, 2018 FIVE JUNE 15 2018 75.000 CALL P.P: 1,760%
June 07, 2018 AVGOJUNE 15 2018 260.000 CALL -17.5%

DECISION TIME!

AS ALWAYS THE DECISION IS YOURS!

Don’t miss out – check out the options trades recommended for the week ahead by becoming a member of Stock Options Made Easy “Earnings Predictions”.

The End Result……

In this instance it appears that it would have been more beneficial, when looking at the total profit, to take profits after the earnings report was announced.

In an article on Monday, June 04, after the market closed – there was the possibility of having a profit of 433%; and this would then have alleviated any further anxiety for the rest of the week’s earnings.

So, by exiting the trade before each earnings report was announced, a total potential profit of 650% could be made. This would also relief any concerns of stock direction after the report.

Now looking below, taking the profits after the earnings report certainly pays off; with a total potential profit of 1,736%.

However, there were three companies that reported that did not match the desired options trade direction. The input from Five Below’s potential profit of 1,760% was certainly the saving trade for the week.

Going back to the week before this – if you had opted out before the earnings report the potential profit would have been 168% compared to a loss of 117% when exiting the trade after the results had been announced. (Bear-in-mind, that this was a bad week in comparison to results from previous weeks – view the results here)

“EARNINGS PREDICTIONS for LAST WEEK” - TAKING PROFITS BEFORE EARNINGS REPORTS!

DATE TRADE GAIN
May 29, 2018 CRM JUNE 15 2018 130.000 CALL P.P: 55%
May 30, 2018 BOX JUNE 15 2018 28.000 CALL P.P: 44%
May 31, 2018 COST JUNE 15 2018 200.000 CALL P.P: 34%
May 31, 2018 ADI JUNE 15 2018 97.500 CALL P.P: 25%
JUNE 01, 2018 ANF JUNE 15 2018 25.000 CALL P.P: 10%


“EARNINGS PREDICTIONS for LAST WEEK” - TAKING PROFITS AFTER EARNINGS REPORTS!

DATE TRADE GAIN
May 29, 2018 CRM JUNE 15 2018 130.000 CALL P.P: 55%
May 30, 2018 BOX JUNE 15 2018 28.000 CALL -80%
May 31, 2018 COST JUNE 15 2018 200.000 CALL -43%
May 31, 2018 ADI JUNE 15 2018 97.500 CALL P.P: 25%
JUNE 01, 2018 ANF JUNE 15 2018 25.000 CALL -74%

GETTING OUT WHILST THE GOING IS GOOD!

GREED CAN BE THE UNDOING OF A GOOD PROFIT!

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. GREED can be the undoing of a nice profit!

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 options trading recommendations, 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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