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Earnings Season Starts This Week – Will Be a Busy Few Weeks Trading

With Alcoa (AA) and the big bank stocks reporting earnings this week (C), (JPM), (WFC), the next month will be full of earnings trades. I use trading strategies that take a neutral approach towards earnings. These include the Strangle, the Reverse Iron Condor, and the Neutral Calendar Spread.

There are still a couple of days left for the reduced subscription rates + match plan that I am offering.

If you have any questions about options or the strategies mentioned above, please e-mail me at: kmob79@gmail.com

Thanks.

-Kevin

Earnings Trade of the Week: PVH Corp. (PVH) Reports Earnings After The Markets Close On 5/25/16

PVH Corp. (PVH) is scheduled to report earnings after the markets close on Wednesday, 5/25/16.

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


Mar 24, 2016

92.43
95.25
90.69
94.29
3,632,200
94.25

Mar 23, 2016

88.30
88.96
87.42
87.63
1,677,800
87.59

(PVH) has been a consistent winner over the years using a Neutral Calendar Spread, which I will also use here. I like this trade a lot. It has wide break-even points. If the stock only makes a marginal price move post-earnings, this trade will do extremely well, and still has plenty of room even if it moves more than expected. I am giving this trade a 9.5/10. Here is how the trade is placed:

Entered Trade

Sell -15 PVH Jun16 90 Call

Buy 15 PVH Jul16 90 Call

Requirements

Cost/Proceeds
$1,200.00
Option Requirement
$0.00
Total Requirements
$1,200.00
Estimated Commission
$45.00

NBBO
0.50 – 1.10. Try to pay 0.80 or less for this trade. At a maximum, pay up to 0.90. See the attachment for the profit/loss chart.

PVH NCS 52416

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

Update 1: 9:25 am EST on 5/26/16: I am placing the price to close this trade out (net credit) at $1.60. I will update any changes to this here, as needed.
Update 2: 3:20 pm EST on 5/26/16: I am increasing the price to close this trade out (net credit) to 1.70.
Update 3: 1:05 pm EST on 5/27/16: Current price to close this trade out now at $1.60.

Daily Options Trading Strategy (DOTS) and Earnings Trades, Refer-A-Friend Subscription Match Plan, San Diego Seminar In June 2016

There have been some very quick in and out trades lately on the Daily Options Trading Strategy (DOTS). You can see the Trade Log at http://kevinmobrien.com/?page_id=480.

Also, earnings trades have also been going very well, some of which I post for free weekly here on my website such as Square (SQ), Red Hat (RHT), CarMax (KMX), and others. Each week, there are always plenty of trading opportunities with earnings releases, and when you use a neutral-based approach as I do, it takes the guessing game out of the equation as to which direction a security will move post-earnings.

Each subscription not only includes my daily DOTS trades, but access to the Trading Forum, where all earnings, weekly, and long-term trades are posted. But there is more than that: I answer questions all day while trading, as my style of trading offers the opportunity to directly communicate with subscribers and to answer any questions you may have throughout the day, along with interacting with many trader’s all over the world. Whether on Skype, Chatzy, or by e-mail, I am always available to help assist you in understanding stock options and trading.

I am offering a Refer-A-Friend Subscription Match Plan until next Friday, April 15,2016. On any subscription plan three (3) months or longer, I will match that for a friend or family member, so basically you can get the subscription at half price that way when referring someone.

On June 13 – 17, 2016, I will be having a seminar in San Diego, CA at the San Diego Convention Center that is both teaching and live trading debit spreads for earnings and weekly trades. If you are interested in these great trading strategies, you won’t find a better teacher of them, I can assure you. Here is the link to the seminar and more additional information: http://kevinmobrien.com/?page_id=1690. Each attendee also receives a free three (3) month subscription to my Trading Forum http://kevinmobrien.com/forum/index.php.

If you have any questions, please feel free to e-mail me anytime at: kmob79@gmail.com. Thanks again.

-Kevin

Weekly Citigroup (C) Reverse Iron Condor Trade – Expires Next Friday, 2/26/16

Each week on Thursday morning, I place my Reverse Iron Condor trades. Citigroup (C) for years has been one of my favorite stocks to use this strategy with. A Reverse Iron Condor is a combination of a Bull Call Spread and a Bear Put Spread. There are 4 “legs” to this strategy. Last week’s Citigroup trade closed out a a 100 % profit, as is usually the case. The key to this strategy is to place it each week, as the compounded gains yearly add up to a very nice profit. I do not recommend trading it one week, and then skipping the next. These trades are also very inexpensive to place, so a great source of additional income weekly, and they require little monitoring. Once the stock starts moving in a specific direction, I will post the price to close out the profitable side of the trade.

Here is how the trade is placed:

Entered Trade

Buy 100 C FebWk4 38 Put

Sell -100 C FebWk4 37 Put

Buy 100 C FebWk4 41 Call

Sell -100 C FebWk4 42 Call

Requirements

Cost/Proceeds
$3,600.00
Option Requirement
$0.00
Total Requirements
$3,600.00
Estimated Commission
$600.00


NBBO
0.23 – 0.49. Try to pay 0.36 or less for this trade. At a maximum, pay up to 0.39. See the attachment for the profit/loss chart.

Q C RIC 21816

Update 1: 8:25 am EST 2/22/16. (C) is up 0.70 pre-market. I am placing the price to close the call side of this trade (bull call spread) at $0.85. On the put side, leave that open for now. There are times where both sides of the trade can profit weekly, and you do not want to sell one side too early.

Update 2: 3:05 pm EST
: STC on the put side at 0.70. On the call side, place the STC at 0.60, day order only.Will update this trade pre-market tomorrow morning

Update 3:
2/24/16: STC at 1.00 on the put side of this trade. On the call side

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