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 VIX–> 20.02 Neutral
Directional Horizontal Earnings Trade
Market Open Long One Short One
Open Edge Stock ATM ATM +2, +3 Open Max
Stock B-A Date Opinion Price  ATM Differed Call Expiring Call Debit Risk
NONE 10/24/18 Bullish
Market Open Long  One Short One
Open Edge Stock ATM ATM -2, -3 Open Max
Stock B-A Date Opinion Price  ATM Differed Put Expiring Put Debit Risk
MSFT B 10/24/18 Bearish $104.30 104.0 108.0 101.0 $4.03 $4.03

Results For This Week’s Earnings Trades

Open Close Profit/Loss
Close ME Stock Stock Open Close Per Weekly
Stock Date Opinion Price Price Debit Debit Spread P/L
MCD 10/23/18 Bullish $167.32 $177.15 $6.97 $10.10 $313.00 313.00
$0.00 313.00
Open Close Profit/Loss
Close ME Stock Stock Open Close Per Weekly
Stock Date Opinion Price Price Debit Credit Spread P/L
CAT 10/23/18 Bearish $130.55 $117.42 $3.00 $5.04 $204.00 204.00
MSFT 10/24/18 Bearish $104.30 $108.36 $4.03 $2.18 -$185.00 19.00
Profit/Loss Bullish Spreads: $313.00
Profit/Loss Bearish Spreads: $19.00
Total Profit/Loss: $332.00
Total Risk Capital: $20,000
Weekly % Return: 1.7%
Annualized % ROI: 86.3%
Average Average % Annualized # Of
Win % Loss % P/L ROI Trades
66.0% 33.0% 1.7% 86.3% 3