Second Trade Ahead Of Earnings Alert for Wed Apr 25 2018

The great thing about the Trade Ahead Of Earnings Strategy is that it does not matter what the markets are doing. Even the in bears of 2001 to 2003 and 2007 to 2009 this strategy performed well. Often it performs better in those types of markets. The higher the volatility, often the trade results are better.

Here are the trades I am setting up today.

1. Facebook Stock (FB) – done
2. VISA Stock (V)
3. AT&T Stock (T)
4. PayPal Holdings Stock (PYPL)
5. Las Vegas Sands Stock (LVS)
6. Chipotle Mexican Grill Stock (CMG)
7. Advanced Micro Devices Stock (And) – possibly a strangle

The stocks below report tomorrow Thu Apr 26 2018 before the open

1. AbbVie Stock (ABBV)
2. PepsiCo Stock (PEP) (not doing a trade)
3. Altria Group Stock (MO)
4. Union Pacific Stock (UNP)
5. United Parcel Service Stock (UPS)
6. Bristol-Myers Squibb Stock (BMY)
7. ConocoPhillips Stock (COP) – (not sure on this one)
8. Raytheon Stock (RTN)
9. General Motors Stock (GM)
10. American Airlines Stock (AAL)
11. Domino’s Pizza Stock (DPZ)
12. Tractor Supply Stock (TSCO)

As you can see there are a lot of stocks being setup and I will not be able to post all of them by the close. Almost all are May 18 reverse iron condor methods.

The big one not to miss is Facebook in my opinion.

Second Trade: Chipotle Mexican Grill Stock (CMG)

They report earnings Wed Apr 25 2018 after the close. I am out to May 18 with a reverse iron condor trade.

May 18 expiry: reverse iron condor

Bought 5 of the $340 put strike for $14.20 and sold 5 of the $325 put strike for $8.30 = $5.90 X 5 = $2950 / $15 spread

Bought 5 of the $340 call strike for $15.07 and sold 5 of the $355 call strike for $8.716 (average) = $6.354 X 5 = $3177 / $15 spread

Commission $15.00

Capital at risk = $6142.00

This is a high risk trade. While CMG has done extremely well for my portfolio over the years of using the Trade Ahead Of Earnings Strategy, the stock always has to make a large enough move to generate enough profit to cover the cost of the trade. This trade has to have the stock move at least $12.00 to break-even. Anything above that is profit. As well often the stock sells off and then within a few days or a week it moves back up. This trade can result in losses if the stock fails to move enough. This is not a trade I would suggest to any investor but it is one that has done well for me over the years of using the Trade Ahead Of Earnings Strategy during earnings.

Thank you for not posting these trades to my public Yahoo forum.

Questions? Use the form below or Ask Teddi.

Learning The Trade Ahead Of Earnings Strategy

For investors learning the Trade Ahead Of Earnings Strategy, one of the best ways to learn is through actual trades, from start to finish.

Here are trade articles that are well worth reading to learn more on the Trade Ahead Of Earnings Strategy including how to setup trades, manage and adjust them and close them for profits. Make sure to paper trade any strategy until there are consistent profits.

Using The Trade Ahead Of Earnings Strategy With Smaller Portfolios: Aug 31 2017

Under Armour Stock: Aug 7 2017 / Strangle

Amazon Stock: July 28 2017 / reverse iron condor

PepsiCo Stock: July 25 2017 / reverse iron condor

Alphabet Stock: July 25 2017 / reverse iron condor

Netflix Stock: July 18 2017 / modified reverse iron condor – full strategy explanation

Netflix Stock: July 17 2017 / handling the modified reverse iron condor

Delta Stock: July 13 2017 / the day after earnings – reverse iron condor

How To Pick Option Strikes May 16 2017

American Airlines Stock Returned 87% – Here’s How – April 27 2017 / reverse iron condor

Alcoa Stock: April 24 2017 – Update of Trade Ahead Of Earnings Strategy After The Close reverse iron condor

Lulu Stock: March 30 2017 – reverse iron condor Handling The Trade Strategy The Day After

Yum Stock: Feb 4 2016: handling a loss when using reverse iron condor trade ahead of earnings

Monster Beverage Stock: May 1 2016: 104% Return – Handling The Trade After Earnings Are Announced

Twitter Stock: May 1 2016: reverse iron condor – calls ended up worthless – 26% returned

Apple Stock: Jan 30 2016: improving on a reverse iron condor trade – 81% return

Disclaimer: There are risks involved in all investment strategies and investors can and do lose capital. You always trade at your own risk. Read the full disclaimer.