Options Winners for Last Week

by Ian Harvey
August 27, 2019

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Stocks: MU, KMX, ACN, RAD, NKE, BB

Four out of six options winners last week for Stock Options Made Easy “Earnings Predictions” members.

By following the strategy outlined in the article Trading Capital Management”where,to achieve maximum profit, and to minimize loss, it is contingent for the trader to use an equal amount of money for each trade – members were able to make a total potential profit, on options winners, of 381% despite two losses.

In comparison, exiting the trades would have made a potential profit of 174%. Obviously this is a much safer strategy but does not produce the same amount of profits as after the earnings report, in most cases; the week before is one such situation, where losses occurred after earnings but profitable exiting before the report.

However, in most cases, members have enjoyed profits from options winners most weeks as can be witnessed in our results – click here.

YOU NEED TO BE IN TO PROFIT!

EARNINGS PREDICTIONS RESULTS FOR WEEK BEGINNING SEPTEMBER 09

DATE TRADE EXITING BEFORE EARNINGS GAIN/LOSS AFTER EARNINGS
September 24, 2019 KMX OCT 18 2019 87.500 CALL 61% P.P 65% P.P
September 24, 2019 BB OCT 18 2019 7.500 CALL 9% P.P -98%
September 24, 2019 NKE OCT 18 2019 90.000 CALL 63% P.P. 208% P.P.
September 26, 2019 ACN OCT 18 2019 190.000 PUT 36% P.P. 31% P.P.
September 26, 2019 RAD OCT 18 2019 7.000 CALL 47% P.P. 245% P.P.
September 26, 2019 MU OCT 18 2019 50.000 CALL 18% P.P. -70%

Options Winners

CarMax, Inc. (NYSE:KMX) – 65%

The company's earnings and revenue increased year-over-year and topped analysts' expectations.

The used car retailer reported earnings of $1.40 per share, up 12.9% from the prior-year quarter. Net sales and operating income totaled $5.20 billion, up 9.1%. Analysts had projected earnings of $1.33 per share on $5.06 billion in revenue.

Nike Inc. (NYSE: NKE) – 208%

Read Nike Moves Higher on a Near-Perfect Earnings Report!”

Nike Inc. (NYSE: NKE), a seller of athletic footwear and athletic apparel worldwide, saw its stock price jump 4.2% to close at $90.81 on the stock market yesterday after reporting earnings that were a near-perfect fiscal first quarter that beat expectations.

Nike earnings jumped 29% to 86 cents a share, its best year-over-year gain in several years. Revenue grew 7% to $10.66 billion. Nike's growth was broad-based, both geographically and across product lines. North America sales climbed 4% to $4.293 billion. China sales shot up 22% to $1.679 billion, or 27% excluding currency shifts.

Accenture Plc (NYSE: ACN) – 31%

Accenture reported mixed fourth-quarter fiscal 2019 results, wherein earnings surpassed the Consensus Estimate but revenues missed the same.

Earnings of $1.74 per share surpassed the consensus estimate by 3 cents and came ahead of the year-ago figure by 16 cents. The bottom line benefited from higher revenues and operating results, lower effective tax rate and lower share count.

Net revenues of $11.06 billion lagged the consensus mark by $13 million but increased 5% year over year on a reported basis and 7.2% in terms of local currency. Net revenues came in line with the higher end of the guided range of $10.85-$11.15 billion.

Rite Aid Corporation (NYSE: RAD) – 245%

Read “Rite Aid Scores A Win!”

The Drugstore chain Rite Aid aimed to please members by reporting a great second-quarter earnings of 12 cents per share on Thursday, beating the analyst consensus estimate of 7 cents by 71.43%.

The company reported quarterly sales of $5.366 billion, missing the analyst consensus estimate of $5.41 billion by 0.81%.

This quarterly report represents an earnings surprise of 50%. A quarter ago, it was expected that this drugstore chain would post earnings of $0.02 per share when it actually produced a loss of $0.14, delivering a surprise of -800%.

Also, Rite Aid narrowed is fiscal 2020 EPS guidance from a range of a loss of 14-72 cents to a range of zero to positive 56 cents. The Street is estimating a 2-cent adjusted EPS loss for 2020.

Options Losers…..

BlackBerry Ltd (NYSE: BB) - -98%

The former-smartphone manufacturer reported disappointing second-quarter earnings before open Tuesday, sending shares into a free fall. The main culprit to the drop was slowing growth on revenue — revenue grew 22% this quarter, which was less than the 23% rate it saw last quarter. Furthermore, EPS dropped from $0.04 per share to breakeven.

Micron Technology, Inc. (NASDAQ: MU) - -70%

Shares of Micron Technology plunged 6.95% to $45.22 in after-hours trading on Thursday despite beating consensus estimates on GAAP earnings for the fourth quarter of fiscal 2019 by 8 cents.

And trading on Friday saw Micron Technology stock dip 11% after its Q4 of fiscal 2019 earnings. This slump occurred after the stock rallied as much as 20% in September on analysts’ optimism.

Micron posted 49 cents per diluted share on $4.87 billion in revenue, reflecting a 1.7% increase from the previous quarter. Revenue beat projections by $310 million.

The Boise, Idaho-based semiconductor memory manufacturer also recorded $2.23 billion in operating cash flow, down 17.7% from the previous quarter, and $1.97 billion in total funds used as capital expenditures, a 10.9% drop. As a result, the adjusted free cash flow fell 47.8% to $263 million.

This is probably a good time to buy, as investors react to Micron’s weaker earnings guidance for the first quarter of fiscal 2020.

Join us today and see what we are considering for the coming week as options winners!

What Can You Do?

Find out what we are recommending “Stock Options Made Easy" members to do.....

What will “Stock Options Made Easy” advise members to do?

More "Earnings Predictions" for options winners will be out before trading starts on Monday.

Join us today and get in the action!


AS ALWAYS THE DECISION IS YOURS!


An Important Note: That any 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!


Best of Trading,
Ian Harvey
Director of Stock Options Made Easy


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