Quick Take: Bullish – Earnings Trade
Time Frame: Three To Ten Days.
Underlying Stock: Bullis Market Edge Opinion – No Position.
Desired Stock Price Direction: Up.
Option Position: Short Expiring ATM Call – Long Differed ATM Call (Credit Spread) & Short Expiring ATM +3 Call.
Desired Result: The stock performs as anticipated. The short expiring ATM +3 call expires worthless and the long deferred call gains additional premium.
Maximum Risk: Initial Call Spread Debit.
Quick Take: Bearish- Earnings Trade
Time Frame: Three To Ten Days.
Underlying Stock: Bearish Market Edge Opinion – No Position.
Desired Stock Price Direction: Down.
Option Position: Short Expiring ATM Put – Long Deferred ATM -3 Put (Credit Spread) & Short Deferred ATM -2 Put.
Desired Result: The stock performs as anticipated. The short expiring ATM -3 put spread expires worthless and the long deferred put gains additional premium.
Maximum Risk: Initial Put Spread Debit.
This Week’s Earnings Trades
| Market Posture: | Bearish | ||||||||
| Directional Horizontal Earnings Trade | |||||||||
| Market | Open | Long One | Short One | ||||||
| Open | Edge | Stock | ATM | ATM +2, +3 | Open | Max | |||
| Stock | Date | Opinion | Price | B-A | ATM | Differed Call | Expiring Call | Debit | Risk |
| NONE | 11/01/18 | Bullish | |||||||
| Market | Open | Long One | Short One | ||||||
| Open | Edge | Stock | ATM | ATM -2, -3 | Open | Max | |||
| Stock | Date | Opinion | Price | B-A | ATM | Differed Put | Expiring Put | Debit | Risk |
| CVX | 11/01/18 | Bearish | $110.32 | B | 110.0 | 113.0 | 109.0 | $2.77 | $2.77 |
| Track Record | |||||||||
| Average | Average | P/L | Annualized | # Of | |||||
| Win % | Loss % | % ROI | ROI | Trades | |||||
| 66.0% | 33.0% | 1.7% | 86.3% | 3 | |||||
Results For This Week’s Earnings Trades
Results for this week’s trades will be posted over the weekend following the close of trading on Friday.