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
| Bullish – Horizontal Earnings Trades | Risk Capital | $20,000 | ||||||||
| Before | Open | Market | Short | Long | % | |||||
| Report | Or After | Stock | Edge | 08/09/19 | 08/16/19 | Open | 100% | Max | Risk Capital | |
| Stock | Date | Market | Price | Opinion | ATM +2 Call | ITM Call | Debit | Target | Risk | Max Risk |
| NONE | 08/06/19 | $0.00 | Bullish | 0.0 | 0.0 | $0.00 | $0.00 | $0.00 | 0.0% | |
| 0.0 | 0.0 | $0.00 | $0.00 | $0.00 | 0.0% | |||||
| 0.0 | 0.0 | $0.00 | $0.00 | $0.00 | 0.0% | |||||
| Bearish – Horizontal Earnings Trades | ||||||||||
| Before | Open | Market | Short | Long | % | |||||
| Report | Or After | Stock | Edge | 08/09/19 | 08/16/19 | Open | 100% | Max | Risk Capital | |
| Stock | Date | Market | Price | Opinion | ATM -2 Put | ITM Put | Debit | Target | Risk | Max Risk |
| AGN | 08/06/19 | Before | $160.37 | Bearish | 157.5 | 162.5 | $2.07 | $4.14 | -$2.93 | 1.5% |
| 0.0 | 0.0 | $0.00 | $0.00 | $0.00 | 0.0% | |||||
| 0.0 | 0.0 | $0.00 | $0.00 | $0.00 | 0.0% | |||||
| Stop | ||||||||||
Results for this week’s trades will be posted over the weekend on the Scoreboard.