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A Look Ahead To Earnings Next Week, 3/14/16 – 3/18/16

Next week provides plenty of opportunities with earnings trades. Among the companies reporting are the following stocks I will be looking to trade:

Monday: JMBA

Tuesday: PLCE, DSW, FDS, JASO, ORCL

Wednesday: ATU, CMCM, CLC, FDX, GES, JBL

Thursday: ADBE

Friday: TIF

Free Earnings Trade of the Week: Square, Inc. (SQ) – Earnings/Long-Term Trade – Expires June 2016

Square, Inc. (SQ) is scheduled to report earnings after the markets close on Wednesday, 3/9/16.

This trade is both an earnings and long-term trade combo. It expires in June 2016. I have been meaning to buy some (SQ) calls for a while, and with earnings due after the bell today, see an opportunity here. Even if the stock should drop post-earnings, the time-value of this trade will hold value in these calls. If the stock should make a significant move upward, this trade has the potential to turn out extremely well. 9/10.

Entered Trade

Buy 10 SQ Jun16 11 Call


Requirements

Cost/Proceeds
$1,650.00
Option Requirement
$0.00
Total Requirements
$1,650.00
Estimated Commission
$15.00

NBBO
1.35 – 2.00. Try to pay 1.65 or less for this trade. At a maximum, pay up to 1.80. I will post the STC tomorrow before the opening bell.

Update 1: 3:55 pm EST. I I am in this trade at 1.65. Already a nice gain, could sell. But with this amount of time left, June exp. will keep it.
Update 2: 9:25 am EST 3/10/16 : Pre-market, the stock is up about $0.20/share. The earnings report was good, and I see this stock continuing to rise. With a lot of time-value left on this trade, I am placing the STC at $4.00 on the calls, as I see the stock heading towards $15.00/share in the near-term future. I will be updating this trade periodically if there are any changes to the STC.
Update 3: 3:34 pm EST 3/10/16: STC still at $4.00. The stock dropped a little bit, nothing significant. Should make a move upward soon. I do not recommend selling anything short of $3.00 if you do not plan to get $4.00.

Free Earnings Trade of the Week: Intuit Inc. (INTU) – Reports After the Markets Close on Thursday, 2/25/16

Intuit Inc. (INTU) is scheduled to report earnings after the markets close on Thursday, 2/25/16.

Last quarter, the stock had the following price movement after reporting earnings:

Nov 20, 2015

106.28
108.00
101.17
103.20
6,622,300
102.88


Nov 19, 2015

96.93
97.68
95.79
97.42
3,985,900
97.12

This stock has a history of initially making a somewhat large price move post-earnings, but then settles down to average a moderate move only. I am going to take advantage of this here, using a Neutral Calendar Spread. The current price to pay for this trade is excellent, especially on a higher-priced stock, if you can get it at my recommend price to pay for it. This trade has the potential to make a great ROI, and carries low risk, as it will retain value either way. 10/10.

Here is how the trade is placed:

Entered Trade

Sell -30 INTU Mar16 100 Call

Buy 30 INTU Apr16 100 Call


Requirements

Cost/Proceeds
$1,800.00
Option Requirement
$0.00
Total Requirements
$1,800.00
Estimated Commission
$90.00

NBBO
0.30 – 0.90. Try to pay 0.60 or less for this trade. At a maximum, pay up to 0.66.

See the attachment for the profit/loss chart.

I will post the price to close this trade out tomorrow morning, right before the opening bell.

INTU NCS 22516

Update 1: 9:25 am EST:
Pre-market, the stock isn’t moving much at all, ideal for the Neutral Calendar Spread strategy. I am placing the price to close this trade out at 1.80. I will update any changes to this here, if needed.

Very Active Trading This Week Using The Daily Options Trading Strategy (DOTS)

It has been a busy week using the Daily Options Trading Strategy (DOTS). You can see the trade log at http://kevinmobrien.com/?page_id=480, where I provide the date, time, ticker symbol, expiration date, price paid, and the sell-to-close (STC) price above what was paid per contract. All of these trades are posted in real-time in the Skype/Chatzy chatrooms daily.

If you have any questions about the strategy or stock options in general, you can e-mail me anytime at: kmob79@gmail.com

Also, I provide a free copy of my book on Bollinger Bands and how to use this technical indicator to trade options (and stocks) daily. Just send me an e-mail and I will send you a copy in PDF format.

Thanks.

-Kevin

Trading In Volatile and Down Market Days Using the Daily Options Trading Strategy (DOTS)

I am often asked how I trade in market conditions that are unpredictable and volatile, especially down markets? My answer is simple: I really do not care what the markets are doing in terms of direction when using the Daily Options Trading Strategy (DOTS). When I check pre-market news and the futures data, I actually prefer to see the markets open down. This is usually a good sign that there will be some early call option trades that are quick in and outs.

Some investors and traders tend to flee and sell their long call or stock positions when they see the markets moving the way they are lately. I see opportunities. THE DOTS strategy has a resiliency and rigor to it that is unique. Just by looking at the trade log on my website, http://kevinmobrien.com/?page_id=480, you will see that most of the trades made are call positions. This was also the case in 2008 and 2009, my best years ever trading the DOTS. It would seem that buying puts would have been the way to go then, but not using the DOTS. Even on a stock like Citigroup (C) and other financial related securities in 2008/2009, which were falling precipitously daily, the DOTS still provided plenty of call buying opportunities daily. The way the strategy is structured, with the Bollinger Bands and the bottom 4 indicators (the Relative Strength Index, the Intraday Momentum Index, the Money Flow Index, and the Full Stochastic Oscillator, with the settings and parameters I use for each) prove to be very adept at spotting true lows daily in a given security. In fact, put trades were very rare during that time, and they still are now.

The settings used for each indicator are crucial to the success of the strategy. When I began developing the strategy, I went through every setting possible with each indicator in tandem. What I use now is the way to best use this strategy and has held up so well after all these years, under every market condition. From trading after the post September 11th attacks, the mortgage crisis and the banks, Greece and the Eurozone problems, oil fluctuations, and now with the current volatility daily. The bottom line is that the strategy works.

This strategy keeps the emotion out of trades. This is a very important aspect of it. It also requires patience and discipline. My point of this post is to not stop trading because of how the current market landscape is or what it will be in the future.

Like any trading strategy, repetition only expedites and enhances the ability to spot great trading opportunities. This is especially true when understanding the Bollinger Bands when using the Daily Options Trading Strategy. The bottom four indicators (the RSI, IMI, MFI, and the FSO) are static, in that once their respective buy points are reached, there is nothing else to look for on them. The Bollinger Bands are the most important element of the strategy. They provide a trader with great insight into the future movement of the stock and the volatility. The Bollinger Bands also show when to avoid a a trade, which is extremely important. If anyone is interested in a PDF file of my book on Bollinger Bands for free, you can e-mail me at: kmob79@gmail.com. . For day trading purposes using the DOTS, I prefer the settings as shown below:

BB 21716

TWTR DOTS 21716

One of the benefits of my subscription service is that I do all of the work for you ahead of each trade. Before each possible trade, I post the ticker symbol, the strike price, expiration, and my sell-to-close (STC) price ahead of each trade. I do all of the necessary “homework” before hand: checking any news that may be related to the stock, the daily highs and lows, the bid/ask prices, and the daily volume. My subscription service is not just an e-mail that tells you what to trade when it is far too late. This is real-time live trading, with me on Skype and Chatzy from 8:00 am EST until the markets close, and later. Along with the trades, I am always answering questions that any subscriber may have. I have a policy that if you are not happy with the service after one full week of trading, I will refund your subscription with no questions asked whatsoever.

If you have any questions about the daily strategy, the subscription, or any general questions about trading, please e-mail me anytime at: kmob79@gmail.com.

-K

A Look Ahead To Next Weeks Earnings – 2/15/16 – 2/19/16

Here are the stocks I will be looking at next week to trade for earnings:

Tuesday: CAKE, DTLK, ESRX, FOSL, PSA, RAX

Wednesday: ADI, BLMN, BRCD, CF, DPS, GDDY, JACK, LZB, NVDA, ASGN, PGR

Thursday:
CRMT, BJRI, SAM, DISH, FLS, FLR, MGM, SODA, WMT, WM

Friday: B, DE, VFC

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