Overstock.com Storms Higher!

Time To Exit?

"Cut-to-the-Chase" Members Up 106% Potential Profit On This Options Trade!

by Ian Harvey

August 10, 2018




Overstock.com Inc (NASDAQ: OSTK)

Overstock.com storms higher after reporting its second-quarter results and announcing an investment in its tZERO subsidiary. An option call trade was recommended to “Cut-to-the-Chase” Members on Thursday, July 19, 2018, based on Overstock.com’s retail arm which has displayed efficiency and is also value based, with a fair price between $1 billion and $2.5 billion.



The Trade……

…….from…… “Cut-to-the-Chase” Recommendations - Week Beginning Monday, July 16, 2018.

The Details……..

Overstock.com Inc (NASDAQ: OSTK) shares skyrocketed in 2017 thanks to the company's efforts to make a business out of cryptocurrencies and blockchain technology. That surge continued into the first week of 2018, where cryptocurrency prices still appeared to have some fresh boosts coming their way.

But when bitcoin and other digital coins ran out of oomph, so did Overstock . The company also presented two disappointing earnings reports along the way, but the market largely shrugged them off and continued to tie Overstock's share prices very closely to the ups and downs of leading cryptocurrencies.

However, shares of Overstock.com fell 47.3% in the first half of 2018, according to data from S&P Global Market Intelligence.

Overstock.com, Inc. is an online closeout retailer offering discount, brand-name merchandise for sale over the Internet. Their merchandise offerings include bed-and-bath goods, kitchenware, watches, jewelry, electronics, sporting goods and designer accessories.

This week saw Overstock.com rallying past $43 in a single session. But, now Overstock is providing a second chance to get in as it pulled back some 4% on Wednesday, which provides a buy of OSTK with a solid-risk/reward. Now near the $40 level and the 100-day moving average, there should be decent support just below current levels……continue reading…..

The Trade……..

** OPTION TRADE: Buy OSTK AUG 17 2018 45.000 CALL at approximately $2.00. Sell price is left to your own judgment.

Earnings Report and Movement Expectations……

Shares of Overstock.com jumped on Friday after the company reported its second-quarter results and announced an investment in its tZERO subsidiary. The stock was up more than 20.00% during the day.

Overstock reported second-quarter revenue of $483.1 million, up 12% year over year. The company posted a net loss of $2.20 per share, driven by a more than doubling of sales and marketing expenses. Overstock is spending heavily on sponsored search, television, and display ads to increase its sales.

One of the main factors pushing the price upwards was GSR Capital agreeing to invest up to $270 million in exchange for as much as 18% of Overstock's tZERO blockchain equity. That puts tZERO's post-money valuation at $1.5 billion. GSR also agreed to buy $30 million of tZERO security tokens and 3.1 million shares of Overstock.

Moving Forward…..

Overstock's core e-commerce business grew during the second quarter, but only because the company hurled cash into marketing. Overstock's GAAP operating loss through the first six months of the year totaled $120.9 million, about 13% of revenue.

However, investors seemingly didn't care at all, instead pushing the stock up due to the tZERO news – which was certainly great for this options trade.

There is no way to predict the impact of whether Overstock's blockchain efforts will ever produce real results – only time will tell!

The Profits

So, for “Cut-To-The-Chase” members, who managed to execute this trade recommended by Stock Options Made Easy; and exited the market yesterday at a peak profit time, would have taken potential profits of 106%.

Entering the option trade at a cost of $2.00 or less; and going as high as $4.12; one options contract would provide a profit of $212; or 106% Potential Profit.

As you would have by now realized, some of our trades are based on earnings predictions. This is not to say all trades recommended to members follow this pattern, as was originally seen in this scenario as part of the “Cut-to-the-Chase Series”, but during earnings season this strategy has been very profitable.

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".....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.

Back to Stock Options Made Easy Home Page from Overstock.com Storms Higher!