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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.

A Look Ahead To Earnings Next Week: 2/29/16 – 3/4/16

Here are the stocks I will be looking at to possibly trade next week for earnings. (Note: my earnings strategies are debit spreads that are neutral-based, such as the Neutral Calendar Spread, Reverse Iron Condor, Strangle/Straddle, and with occasional long positions placed). These strategies allow me to take a non-biased approach as to direction, where a trader can profit no matter which way the stocks moves after reporting earnings.

Monday:
BSFT,CROX, GLP, LL, WDAY

Tuesday:
BGFV, BOBE, DKS, DLTR, JKS, PGR, ROST, TIVO

Wednesday:
JOBS, COST, BREW

Thursday:
AVGO, BURL, CIEN, DMND, TFM, JOY, NMBL, PRFT, SWHC, SSI, KR, TSL, WING,

Friday: BIG

Free Earnings Trade Of The Week: The Walt Disney Company (DIS) – Reports After The Markets Close On Tuesday, 2/9/16

The Walt Disney Company (DIS) is scheduled to report earnings after the markets close on Tuesday, February 9, 2016.

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

Nov 6, 2015

114.60
116.75
114.57
115.67
16,803,400
115.67


Nov 5, 2015

113.26
113.93
111.60
113.00
14,843,700
113.00

Historically, (DIS) does not move a lot post-earnings. I like the Neutral Calendar Spread here, which is a strategy that takes advantage of overpriced options and time-decay. The current Implied Volatility (IV) on the February Week 2 expiration is 86.77, while the Implied Volatility on the February 2016 expiration is 54.02. I am expecting the stock this quarter to move around $2.00 -$2.50/share This fits in well with the Neutral Calendar Spread strategy, as the break-even points are wide and the potential ROI is also high. I am giving this trade a 9/10.

Here is how the trade is placed:

Entered Trade

Sell -25 DIS FebWk2 91 Call

Buy 25 DIS Feb16 91 Call


Requirements

Cost/Proceeds
$1,000.00
Option Requirement
$0.00
Total Requirements
$1,000.00
Estimated Commission
$75.00


Greeks / NBBO

IV

DIS FebWk2 91 Call

86.77

DIS Feb16 91 Call

54.02

NBBO 0.30 – 0.50. Try to pay 0.40 or less for this trade. At a maximum, pay up to 0.43.

See the attachment for the profit/loss chart. I will post the price to close this trade out tomorrow before the opening bell.

DIS NCS 2916

Update 1: 9:25 am EST
: I am placing the closing price at 0.80. I will update any changes to this here, if needed.

Update 2: 1:48 pm EST: This trade is looking very good. STC still at 0.80.

Update 3: 2/1116: Position Closed.

Earnings Trade of the Week: eBay Inc. (EBAY) – Reports After the Markets Close On 1/27/16

eBay Inc. (EBAY) – Earnings Trade – After the markets close 1/27/16

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

Oct 22, 2015

26.50
27.66
26.26
27.58
44,605,900
27.58

Oct 21, 2015

24.56
24.70
24.18
24.21
16,881,400
24.21

The Neutral Calendar Spread strategy on this trade is beyond cheap to place. In fact, I haven’t seen such a low cost to place this strategy on any stock in quite some time. It simply has to be placed. Even if it were more expensive, I would still use it, as the break-even points are wide, and the possible ROI is very good. This is a 10/10. A must trade.

Here is how the trade is placed: (Note: I am using 100 contracts personally, you do not have to do the same)

Entered Trade

Sell -100 EBAY JanWk5 26.5 Call

Buy 100 EBAY Feb16 26.5 Call

Requirements

Cost/Proceeds
$1,200.00
Option Requirement
$0.00
Total Requirements
$1,200.00
Estimated Commission
$300.00

NBBO
0.12 – 0.16. Try to pay 0.14 or less for this trade. At a maximum, pay up to 0.17. Try to get in this trade immediately, the price may not last long.

See the attachment for the profit/loss chart.

EBAY NCS 12716

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

Update 1: 9:25 am EST. I am placing the close price at 0.40

Very Busy Week for Earnings & Trading Opportunities, January 25 – 29, 2016

This week especially is loaded with earnings, so there should be plenty of trading opportunities. Among the stocks reporting earnings this week that I will to trade are the following:

AAPL, BABA, AMZN, PKG, PII, LMT, BA, DFS, FB, TXN, SWI, JNPR, JNJ, T, BBOX, COF, NVR, ABAX, PYPL, CAT, EA, HOG, LLL, MKC, MSFT, V, CVX, HON, MA, PX, STX,

Almost all of my earnings trades are neutral-based, meaning that I do not choose a specific direction. This allows a trader to profit regardless if the stock moves up or down post-earnings. Strategies that I like to use for earnings are the Neutral Calendar Spread, the Reverse Iron Condor, Strangle/Straddle, and occasionally the Long Put Butterfly Spread.

Next week should be very busy as well for earnings.

I am offering discounted subscription plans until January 31, 2016. If you have any questions, you can e-mail me at: kmob79@gmail.com

Free Earnings Trade of the Week: Netflix, Inc. (NFLX) – Reports After The Markets Close 1/19/16

Netflix, Inc. (NFLX) is scheduled to report earnings after the markets close on Tuesday, January 19, 2016.

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


Oct 15, 2015

103.77
104.88
99.10
101.09
48,484,300
101.09

Oct 14, 2015

111.50
111.63
108.05
110.23
33,231,500
110.23

NFLX has been a very volatile stock lately, it has been having up days on really down market days, and vice versa. I think this quarter, the stock is going to make a bigger than usual price move. However, I want to give myself some time on this trade so the Implied Volatility drop that happens post-earnings won’t effect the price of the options too much. I will be using a Strangle strategy with out-of-the-money options and March 2016 expiration dates. This provides a lot of time-value, and should the stock make a big move, up or down, this trade will do extremely well. Even if the stock makes only a $10.00 price move, I do not see the price of the options deteriorating much at all as they have almost 2 months until they expire. While this trade is not cheap to place (using 7 contracts only on each leg), there is not much risk overall. 9/10.

Here is how the trade is placed:

Entered Trade

Buy 7 NFLX Mar16 130 Call

Buy 7 NFLX Mar16 85 Put


Requirements

Cost/Proceeds
$4,480.00
Option Requirement
$0.00
Total Requirements
$4,480.00
Estimated Commission
$21.00

NBBO
6.30 – 6.55. Try to pay 6.45 or less for this trade. At a maximum, pay up to 6.55. I will post the STC orders tomorrow, right before the opening bell.

Update 1: 9:24 am EST
: After-hours yesterday, the stock made a big move, but is currently only up about $2.00/share, most likely due to the futures being down. I am placing the STC on the call side at $9.00, as the earnings report was very good, so expecting it to move back up. On the put side, place the STC at 7.00 for now. I will be updating this trade frequently here.

Update 2: STC on the puts at 9.00


Update 3: NFLX falling, place the STC on the puts at 11.00 now. Will continue updating as needed.

Update 4: 9:40 am EST. STC at 10.00 on the put side. STC at 7.00 on the call side.

Earnings Trade Possibilities for the Week of 1/19/16 – 1/22/16

Tuesday: AMD, CREE, IBM, NFLX

Wednesday
: FFIV, GS, KMI, PCP, SLM

Thursday
: AXP, ETFC, ISRG, SBUX, LUV, UAL, VZ

Friday
: GE

Earnings Trade of the Week: Intel Corp. (INTC) – Reports After The Markets Close – 1/14/16

Intel Corporation (INTC) is scheduled to report earnings after the markets close on Thursday, January 14, 2016.

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


Oct 14, 2015


31.39

32.93
30.85
32.80
75,954,800
32.57

Oct 13, 2015

32.03
32.48
31.98
32.04
35,588,600
31.82

(INTC) is a stock that historically does not make too much of a price move after reporting earnings. Also, tomorrow is expiration Friday, so using a strategy that takes advantage of time-decay and a lack of a large price move is the right strategy to use. For this trade, I will be placing a Neutral Calendar Spread. The current Implied Volatility On the January 2016 expiration (the sell side) is at 114, while the February expiration is only 31. This is always important when looking at the Neutral Calendar Spread: the discrepancy in the IV. It is a great indicator to show an overpriced option (the sell side). I am giving this trade a 10/10. It should profit immediately tomorrow morning, which is when I plan to close it out.

Here is how the trade is placed:

Entered Trade

Sell -25 INTC Jan16 32 Call

Buy 25 INTC Feb16 32 Call


Requirements

Cost/Proceeds

$925.00

Option Requirement

$0.00

Total Requirements

$925.00

Estimated Commission

$75.00


Greeks / NBBO

IV

INTC Jan16

32 Call

0.88

0.91

114.31

INTC Feb16

32 Call

31.30


NBBO
0.35 – 0.41. Try to pay 0.38 or less for this trade. At a maximum, pay up to 0.40. See the attachment for the profit/loss chart.

INTC NCS 11416

I will post the close order price tomorrow pre-market before the opening bell.

Update 1: 9:20 am EST: Pre-market, the stock is down 2.10 a share. I am expecting the stock to make a recovery during the day. I am placing the order to close this trade out at 0.65. I will update any changes here, if needed.


Update 2: 0.60 STC

Update 3: STC at 0.50.

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