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 Trades
| Directional Horizontal Earnings Trades | ||||||||||
| Bullish | Market | Open | Earnings | Short One | Long One | |||||
| Open | Edge | Stock | Release | Report | ATM +2, +3 | ITM One-Week | Open | 50% | Max | |
| Stock | Date | Opinion | Price | B – A | Date | Expiring Call | Deferred Call | Debit | Target | Risk |
| CMG | 02/05/19 | Bullish | $527.30 | After | 02/05/19 | 532.5 | 527.5 | $4.10 | $6.15 | $4.10 |
| Bearish | Market | Open | Earnings | Short One | Long One | |||||
| Open | Edge | Stock | Release | Report | ATM -2, -3 | ITM One-Week | Open | 50% | Max | |
| Stock | Date | Opinion | Price | B – A | Date | Expiring Put | Deferred 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% | 7.1% | 91.9% | 4 | 9 | |||||
Results for this week’s trades will be posted over the weekend on the Scoreboard.