Upcoming Earnings

I decided to go with the BAC earnings play. Collected 74 cents for the $23 straddle.

 

Earnings today BMO: $BAC, $BLK, $FHN, $FRC, $INFY, $JPM, $PNC, $WFC

 

3 for 3 now on my earnings trades. Collected around $35.00 for this one.

 

Took out an earnings trade on Morgan Stanley (MS). Sold the 44 call option and the 43 put option.

So, let's stay between those strikes!

 

Welcome fourth quarter earnings season. This season is important - not only because investors are keen to know if the positive stock market sentiment post Trump elections will be reflected in delivery of corporate earnings / profits, but also because it will set the tone for corporate America's expectations of future earnings under Trump regime and provide guidance on the sanity of market valuations

Financials and Energy will definitely be the stars this season as Trump policy expectations of lower regulation, higher rates under his regime, OPEC deal put these sectors in a sweet spot. However, other sectors like technology, healthcare, consumer staples, industrials, telecoms and materials are also expected to deliver earnings growth this year.

But these factors could spoil the party:
1) Investors will be keenly watching for CEO guidance for future outlook. There remains a possibility of CEOs not reflecting investor enthusiasm about future in their projections, given lack of policy specifics. Not so upbeat earnings projections may have implications for the stock market as investors worry about over-stretched valuations in absence of strong earnings.
2) With more than 2/5 of sales of S&P 500 companies coming in from outside the US, a strong dollar also might spoil the earnings expectations for multinationals, as it could potentially hit their revenues. It remains to be seen if the drag from a strong dollar will be offset by Trump's tax reform and healthier domestic outlook. Investors should carefully evaluate currency neutral earnings estimates.

Read more here about this week's upcoming earnings reports here: http://hubs.ly/H05Vm9r0

 

Closed this one this morning for about a $35 winner. Made about $70 because I sold 2.

4 for 4 so far this earnings season. Woohoo!

 

Sold a put in CSX for an earnings play. The $37.00 put for .41 cents.

If it keeps going down today, I'll sell another one and try and get a little more premium.

 

Earnings play #5 and #6.

CSX above and in UAL I did a "super bowl". Sold some puts and financed a call spread.

 

Took off CSX this morning for a very small win, maybe $5.00.

UAL is a winner right now but I'm hoping it'll go up some more and become a larger winner. Not taking it off just yet.

Currently I'm 5 for 5 on earnings trades.

 

Took off UAL today for winner number 6.

NFLX was winner number 7

And UNP is winner #8.

Let's keep this streek going!

 

Three more earnings plays for tonight.

IBM
AXP
SWKS

Playing naked strangles in three. Nothing fancy.

 

Did great in IBM and AXP. Made almost 100% of what I wanted.

SKWS is killing me right now. My first loser this earnings cycle. Going to have to add it to my earnings trades gone wrong.

 

Playing MCD and Hal for Monday.

So far, one loser. SWKS.