Playing options through earnings is a complete gamble and sometimes absolutely stupid but I have managed to make some sweet coin gambling on tickers like MSFT and LULU. I absolutely wrong on NFLX!
Entries for earnings plays are totally stupid and complete gamble but they have worked 3 out of 4 trades for me in the last 4 months.
Guidance is all about what the CEO/CFO said in the last conference call. If they beat their own expectations then we’ll see some big time pops in the ticker price.
Researching a ticker for how they will fare in their earnings report is not easy. Usually it depends on the options activity and analyst expectations.
Sometimes big tickers can beat on earnings but miss on things like subscribers, active users and members. For example, NFLX beat on earnings in their 2018 2nd quarter report but missed on subscribers outside of the U.S. This was a direct reflection of how the market believe NFLX will grow and prosper to satisfy shareholders’ value.
More to come on this… VIDEO and maybe on interview/podcast
PLEASE USE THE COMMENT SECTION TO ADD YOUR OWN INSIGHTS ON EARNINGS PLAYS.
Sites for research:
… seeking alpha??