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.