Quick Take: Bullish – Earnings Trade
Time Frame: Three To Ten Days.
Underlying Stock: Bullish Market Edge Opinion – No Stock Position.
Desired Stock Price Direction: Up.
Option Position: Short Expiring ATM +2 Call – Long Deferred ATM Call (Credit Spread).
Maximum Risk: Initial Call Spread Debit.
Summary: The stock performs as anticipated. The short expiring ATM +2 call expires worthless and the long ITM deferred call gains additional premium.
Quick Take: Bearish– Earnings Trade
Time Frame: Three To Ten Days.
Underlying Stock: Bearish Market Edge Opinion – No Stock Position.
Desired Stock Price Direction: Down.
Option Position: Short Expiring ATM -2 Put – Long Deferred ATM Put (Credit Spread).
Maximum Risk: Initial Put Spread Debit.
Summary: The stock performs as anticipated. The short expiring ATM -2 put expires worthless and the long ITM deferred put gains additional premium.
This Week’s Earnings Season Trades
| Start | Stop | |||||||||
| Directional Horizontal Earnings Trade | ||||||||||
| Market | Open | Earnings | Short One | Long One | ||||||
| Open | Edge | Stock | B – A | Report | ATM +2, +3 | ITM | Open | 50% | Max | |
| Stock | Date | Opinion | Price | Release | Date | Expiring Call | Differed Call | Debit | Target | Risk |
| UTX | 01/22/19 | Bullish | $110.87 | B | 01/23/19 | 113.0 | 108.0 | $3.28 | $4.92 | $3.28 |
| Market | Open | Earnings | Short One | Long One | ||||||
| Open | Edge | Stock | B – A | Report | ATM -2, -3 | ITM | Open | 50% | Max | |
| Stock | Date | Opinion | Price | Release | Date | Expiring Put | Differed Put | Debit | Target | Risk |
| NONE | Bearish | $0.00 | 0.0 | 0.0 | $0.00 | $0.00 | $0.00 | |||
| $0.00 | $0.00 | $0.00 | ||||||||
| Track Record | ||||||||||
| Profit/Loss | Annualized | # Of | # Of | |||||||
| Win % | Loss % | ROI | ROI | Weeks | Trades | |||||
| 83.0% | 16.5% | 4.9% | 127.5% | 2 | 5 | |||||
There are no new earnings selections this week. Check back in January 2019 when Earnings Season gets into full swing.
Results for this week’s trades will be posted over the weekend on the Scoreboard.