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Lululemon Athletica Inc. (LULU) Earnings Trade – The Double Neutral Calendar Spread Placed On 12/6/17 Explained

Lululemon Athletica Inc. (LULU) reported earnings after the markets closed on Wednesday. (LULU) is a great candidate to use the Double Neutral Calendar Spread strategy. To read more about this strategy, see this link here: http://kevinmobrien.com/?p=858

At the time of placement on Wednesday, (LULU) was trading at $66.50/share. Understanding past performance movement post-earnings on the stock, (LULU) tends to move in the $4.00 -$6.00 range, up or down after reporting earnings. When using this strategy, I like to go on the higher end of price movement. For example, at $66.50 a share, I was looking at the $72.50 strikes on the call side, and $61.50 on the put side. While there other closer near the money strikes available, using those presented too much risk for me, allowing less price movement in the share price to make a profit I was satisfied with.

Trade and Probability Calculator/P/L Chart

I got this trade filled at a $0.33 debit.

The following morning, (LULU) opened up at $73.35/share. This was a perfect scenario. Immediately at the open, the trade was very profitable. It could have been closed out then. However, an important factor with this strategy is that time-decay is on your side at this point. Depending on what kind of profit a trader is content with, a choice has to be made. I chose to keep the trade until this morning (Friday, 12/8/17). Understanding that the stock wasn’t going to make a drastic price move, time-decay taking place, I closed the position out at a $1.10 net credit on the call side, and also got $0.10 on the put side, which I sold on Thursday morning.

To compare strategies and costs, a Straddle strategy (buying both calls and puts that are at-the money), would have cost about $7.50. Using ten (10) contracts on each leg, this trade would have costs $7,500.00, minus commissions. A Strangle strategy would cost less, but there is also a lot more risk, as the stock has to move much more in order to profit.

Another benefit of the Double Neutral Calendar Spread strategy is how well it holds value. On a Straddle/Strangle, there must be a major price move in order to profit or you will be looking at a major loss. In my opinion, the Straddle is the most risky earnings strategy one can place. While the potential profit is unlimited on the upside (the calls), there is simply too much of a price move needed, often unrealistically.

When using this strategy, you want to see a profit/loss chart that looks like the one I posted above. If you see any points in the chart that look like this, avoid the trade completely:

You will always want to avoid non-volatile stocks that have a history of making minimal price moves post-earnings.

As I mentioned in my first post about this strategy, when used properly with the parameters I emphasize, this strategy is one of the most inexpensive, low risk, and profitable strategies there is when using for an earnings-based trade.

If you have any questions about this strategy, or stock options, please leave a comment or e-mail me at: kmob79@gmail.com

This strategy, and all earnings traded are posted on my Trading Forum website, and each subscription has access to these trades (you receive them instantly via e-mail once posted). I am currently offering a subscription match plan until this Sunday, 12/10/17.

Thanks again.

Updated List of Stocks Used For The Daily Options Trading Strategy (DOTS) – Current as of 11/28/17

Here is the updated list of stocks used in the Daily Options Trading Strategy, current as of 11/28/17:

Tier 1: AAPL, AMZN, BIDU, BABA, GOOGL, FB, NFLX, NVDA, TSLA

Tier 2: BA, TWTR, SHOP, SQ, CMG, CRM, ULTA, FFIV, AKAM

Tier 3: RHT, PYPL, FDX, NUGT, EXPE, FSLR, CAT, C, IBM

I also have discounted subscription rates until this Friday, 12/1/17.

If you have any questions, you can e-mail me anytime at kmob79@gmail.com

Updated Daily Options Trading Strategy (DOTS) List of Stocks Used – Current as of 10/13/17

Here is the updated list of stocks used in the Daily Options Trading Strategy, current as of 10/13/17:

Tier 1: AAPL, AMZN, BIDU, BABA, GOOGL, FB, NFLX, NVDA, TSLA

Tier 2: BA, TWTR, C, SQ, CMG, CRM, ULTA, FFIV, AKAM

Tier 3: RHT, PYPL, FDX, NUGT, EXPE, FSLR, LMT, ISRG, IBM

If you have any questions, you can e-mail me at: kmob79@gmail.com

Thanks.

Earnings Season Promo: Subscription Match Offer – From Thursday, 10/12/17 to Sunday, 10/15/17

From Thursday, October 12, 2017 through Sunday, October 15, 2017, I am offering all new subscribers a match on all subscriptions. This offer lasts until Sunday (10/15/17), ahead of earnings season, which starts in full next week. The match plan is as follows:

1 Month subscription = 2 Months
3 Month subscription = 6 Months
6 Month subscription = 1 Year
1 Year subscription = Lifetime

Once signed up, I will automatically credit your account with the match to whichever plan you choose.

If you have any questions, you can e-mail me at: kmob79@gmail.com

Thanks.

Very Busy Trading Day on Tuesday, 9/5/17

Today was a very busy trading day, 7 out of 7 winners. Even when the markets are down, the Daily Options Trading Strategy (DOTS) holds up extremely well. I actually prefer that the markets open down with the strategy, as it provides more call option buying opportunities. On average, each DOTS trade nets from 5% – 10% per trade, with an average of 7.5%. However, 15% winners are not uncommon depending on the charts, especially the Bollinger Band width and time of day.

Here are the trades for Tuesday, 9/5/17.

830. Tuesday, 9/5/17. NVDA at 9:39 am EST. 0.60 STC order above price paid/contract. September 165.00 calls. Paid 5.01 per contract.
831. Tuesday, 9/5/17. AMZN at 9:44 am EST. 1.10 STC order above price paid/contract. September 970.00 calls. Paid 12.60 per contract.
832. Tuesday, 9/5/17. BA at 10:57 am EST. 0.50 STC order above price paid/contract. September 235.00 calls. Paid 4.00 per contract.
833. Tuesday, 9/5/17. AAPL at 11:20 am EST. 0.40 STC order above price paid/contract. September 160.00 calls. Paid 4.35 per contract.
834. Tuesday, 9/5/17. NVDA at 12:13 pm EST. 0.35 STC order above price paid/contract. September 165.00 calls. Paid 3.80 per contract.
835. Tuesday, 9/5/17. AAPL at 12:16 pm EST. 0.09 STC order above price paid/contract. September 160.00 calls. Paid 4.00 per contract.
836. Tuesday, 9/5/17. AMZN at 12.19 pm EST. 1.00 STC order above price paid/contract. September 960.00 calls. Paid 14.30 per contract

You can also see my trade log at at the top of the homepage.

I am offering an end of summer subscription discount on all plans. You can see more about that on my post earlier today.

Also note that I do offer a free copy of my book on Bollinger Bands specifically, a nice complement to my main book on the Daily Options Trading Strategy. Just e-mail me to request the book, and I will send you a PDF file of it.

If you have any questions, you can e-mail me anytime at: kmob79@gmail.com

Thanks.

Subscription Discount – September 5, 2017 – September 12, 2017

I am offering subscription discounts on all plans from Tuesday, September 5, 2017 until September 12, 2017.

Here are the discounted rates:

One Week Subscription – $39.99

One (1) Month Subscription – $119.99

Three (3) Month Subscription – $299.99

Six (6) Month Subscription – $499.99

One (1) Year Subscription – $699.99

Lifetime Subscription – $899.99

All subscription plans include real-time trading alerts on Skype using my Daily Options Trading Strategy (DOTS) and access to the Trading Forum, where I post weekly, earnings, and long-term trades.

All subscriptions come with a full one week money back guarantee if you are not satisfied with the service.

If you have any questions, you can e-mail me at: kmob79@gmail.com.

Thanks again.

Updated List of Stocks Used For The Daily Options Trading Strategy (DOTS) – Current as of 8/16/17

Here are the current list of stocks I am using for my Daily Options Trading Strategy (DOTS). I separate the stocks into three (3) tiers, with nine (9) stocks per tier. The Tier 1 are the preferred stocks to trade, and so forth.

Tier 1: AAPL, AMZN, BIDU, BABA, GOOGL, FB, NFLX, NVDA, TSLA

Tier 2: BA, ULTA, TWTR, CRM, RHT, NUGT, CMG, ULTA, LMT

Tier 3: BWLD, EXPE, AKAM, PCLN, SQ, FFIV, HLF, C, FSLR

If you have any questions, you can e-mail me anytime at: kmob79@gmail.com

Very Busy Week Trading So Far (6/12/17 – 6/13/17) – Daily Options Trading Strategy (DOTS)

This week has gotten off to a great start using the Daily Options Trading Strategy (DOTS). The daily volatility is providing plenty of opportunities, as the strategy takes advantage of daily swings in stocks. So far, here are the trades placed and closed out:

797. Monday, 6/12/17. AMZN at 9:39 am EST. 1.50 STC order above price paid/contract. June 950.00 calls. Paid 17.50 per contract.
798. Monday, 6/12/17. NFLX at 9:50 am EST. 0.50 STC order above price paid/contract. June 150.00 calls. Paid 3.80 per contract.
799. Monday, 6/12/17. FB at 9:57 am EST. 0.50 STC order above price paid/contract. June 145.00 calls. Paid 2.90 per contract.
800. Tuesday, 6/13/17. NVDA at 10:08 am EST. 0.50 STC order above price paid/contract. July 150.00 calls. Paid 8.80 per contract.
801. Tuesday, 6/13/17. BABA at 10:29 am EST. 0.40 STC order above price paid/contract. July 140.00 calls. Paid 4.50 per contract.
802. Tuesday, 6/13/17. NVDA (again) at 10:46 am EST. 0.40 STC order above price paid/contract. July 150.00 calls. Paid 7.40 per contract.
803. Tuesday, 6/13/17. AMZN at 11:00 am EST. 2.00 STC order above price paid/contract. July 965.00 calls. Paid 30.35 per contract.

Also, today was supposed to be the last day I was offering the subscription match plan (see last week’s post), but will extend that until this coming Thursday (6/15/17). If you have any questions, you can e-mail me at: kmob79@gmail.com

Thanks.

Updated List of Stocks Used – Daily Options Trading Strategy (DOTS) – 4/21/17

Here is the current list of stocks used for the Daily Options Trading Strategy (DOTS), current as of 4/21/17:

Tier 1: AAPL, AMZN, BIDU, BABA, GOOGL, FB, NFLX, PCLN, TSLA

Tier 2: BA, MA, TWTR, CMG, NUGT, NVDA, ULTA, C, MU

Tier 3: CAT, GPRO, RHT, LULU, SWKS, EXPE, CRM, SQ, AKAM

Tier 4: ADBE, WYNN, X, ATVI, MOMO, PX, FDX, STZ, PYPL

Key additions: MA, MU, SWKS, ADBE, X, MOMO, PYPL

I am offering a discount on all subscription plans until this Sunday, 4/23/17, and will match any subscription plan that is three (3) months or longer.

If you have any questions, you can e-mail me at: kmob79@gmail.com

Thanks.

-K

Daily Options Trading Strategy (DOTS) – Updated Stock List – Current as of 3/31/17

Here is the current list of stocks used for the Daily Options Trading Strategy (DOTS), current as of 3/31/17

Tier 1: AAPL, AMZN, BIDU, BABA, GOOGL, FB, NFLX, PCLN, TSLA

Tier 2: BA, BWLD, TWTR, CMG, NUGT, NVDA, ULTA, C, SQ

Tier 3: CAT, GPRO, RHT, LULU, LMT, EXPE, CRM, DIS, AKAM

Tier 4: IBM, WYNN, BBY, ATVI, MCD, PX, FDX, STZ, COST

If you have any questions, you can e-mail me at: kmob79@gmail.com

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