by Ian Harvey
August 03, 2018
OUT WHILST THE GOING IS GOOD!
GREED CAN BE THE UNDOING OF A GOOD PROFIT!
Square Inc. (NYSE:SQ)
Here is an update of Square's options call trade. This options trade was recommended to “Earnings Predictions” Members on Monday, July 30, 2018, based on Square’s upward revision, Weebly growth, strengthening omni-channel commerce, improving Gross Payment Volume ("GPV") and robust performance of CashApp in the bitcoin space; and the likely ability to produce a sound earnings report.
NOW…..it is time to consider a new call options trade.
PATIENCE PAYS OFF!
YOU NEED TO BE IN TO PROFIT!
** OPTION TRADE: Buy SQ AUG 17 2018 70.000 CALL at approximately $3.75. But able to buy at $2.00 on the day!
The New Suggested Trade…..
** OPTION TRADE TO CONSIDER: Buy SQ SEPT 21 2018 75.000 CALL at approximately $3.50. Sell price is left to your own judgment.The Previous Details……..
Payment processing and point-of-sale upstart Square Inc. (NYSE:SQ)
will report earnings after the market closes. The consensus earnings estimate
is for $0.12 per share on revenue of $759.82 million; but the Whisper number is
for $0.13 per share. The company's guidance was for earnings of $0.09 to $0.11
per share on revenue of $740.00 million to $760.00 million. Consensus estimates
are for year-over-year earnings growth of 400.00% with revenue increasing by
Square has issued a revision to guidance for the second quarter...……continue reading…..
Why This Trade Was Successful!………
Square Inc. delivered strong second-quarter 2018 adjusted earnings of 13 cents per share, which beat the Consensus Estimate by 2 cents and also came ahead of management's guided range of 9-11 cents per share. The figure also surged 85.7% on a year-over-year basis and 116.7% sequentially.
Net revenues of $815 million surpassed the Consensus Estimate of $773 million and also came ahead of the revised guided range of $744-$764 million. The figure increased 47.6% from the year-ago quarter and 21.8% on a sequential basis.
As per the company reported, adjusted revenues came in $385 million, up 60.4% year over year and 25.4% from the previous quarter. The figure also comfortably surpassed management's revised guided range of $362-$367 million.
Why A New Options Trade?..…
Based on Square Inc’s latest earnings release for the quarter ending June 30, the company reported a quarterly GAAP net loss of $5.91 million. In comparison, last year the company had a GAAP net loss of $15.96 million.
In a report released yesterday, James Friedman from Susquehanna reiterated a Buy rating on Square Inc, with a price target of $77. The company’s shares opened today at $72.65, close to its 52-week high of $73.19.
Already Existing Profits
So, for “Earnings Predictions” members who managed to execute this trade recommended by Stock Options Made Easy; and wish to take potential profits now, 105%, at last look, was available.
Entering the option trade at a cost of $2.00 or less; and going as high as $4.05; one options contract would provide a profit of $205.00; or 105% Potential Profit.
ACTION TO TAKE…….
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, but obviously this scenario is part of the “Earnings Predictions Series”, does follow suit; and 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?".....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.
Our proven track record says it all!!
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