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Earnings Trader
Collect the Biggest Option Payouts Every Quarter
Issues
We are officially entering the earnings doldrums, but that certainly doesn’t mean that opportunities won’t present themselves. For instance, this week Marvell (MRVL) announces earnings and offers a decent opportunity for an iron condor and potentially a candidate for a short strangle.

I’ve gone over an iron condor example in the “Weekly Trade Ideas” section below and will send out a short strangle idea as we get closer to the earnings announcement Friday. As always, I’ll let everyone know (in a separate alert) whether or not I will be making the trade.
Another earnings season is finally behind us.

After two winning trades in Home Depot (HD) and Walmart (WMT) last week our cumulative total for the earnings cycle was 21.7%. That’s an average gain of 3.1% per trade, below our expected return per trade but certainly nothing to sneeze at, especially in this volatile market. I’ll take what can be thought of as paying myself a 3.1% dividend, seven times, over the past month or so. Again, not even close to a home run, but remember, we aren’t playing long ball. Aaron Judge doesn’t interest us. Our goal is to hit singles and doubles with each and very trade we place. We’re taking the Tony Gwynn/Rod Carew approach to trading earnings.
As I discussed in our subscribers-only webinar on Friday, this week should be the busiest trading week of the earnings cycle.

Several of the big box retailers are due to report including Home Depot (HD), Walmart (WMT), Lowe’s (LOW), Target (TGT), Cisco Systems (CSCO) and a few other notable names. All offer good volume and all are currently offering some decent premium for trades with at least an 85% probability of success, if not slightly higher.

I expect that we will see at least three trades, if not more, this week before we enter the doldrums of another earnings off-season that begins in earnest next week.
The upcoming week of earnings is a fairly slow one, with only a few real choices on the docket. Disney (DIS) is definitely the highlight of the week and the one I will be focusing on.

However, the following week we see lots of the big boys due to report, including Walmart (WMT), Home Depot (HD), Lowe’s (LOW), Target (TGT), Cisco Systems (CSCO) and several others. As I stated in the last webinar, I expect to see at least three, if not more, trades that week as earnings season slows down significantly afterwards.

As for this past week, we were able to get out for a small 2.7% loss in SBUX. So far this earnings season, we are averaging a one-day return of roughly 4% per trade, or what has been 4% per week for this earnings cycle. Certainly nothing to write home about, but respectable nonetheless given the overall performance of the market. I anticipate that we will make at least four more trades, if not more, before the earnings cycle slows down in two weeks.
Since earnings season began, we’ve been fortunate enough to lock in all three of our earnings trades for winners. Our cumulative totals sit at 17.3% for an average one-day return of 5.8%.

Our latest winner came on Wednesday as we placed a trade in Mastercard (MA). We locked in a profit shortly after the opening bell the following day for a one-day return of 5.3%, mostly due to the volatility crush that occurs immediately following an earnings announcement when most of the near-term, built-in uncertainty in the stock has passed.
If you didn’t get a chance to attend last week’s subscriber-only event you can access the recording of the event here. It will be well worth your listen as we covered the ins and outs of our AXP trade and offered a detailed look at a few potential upcoming trades.

We locked in another profitable trade late last week, this time in American Express (AXP). I went over the trade in great detail in our subscriber-only event so if you have the time, take a listen as you will find the information discussed incredibly helpful going forward. Our one-day return in AXP was 5.3%, which brings us to a total of 12% for this earnings season.

Earnings season is finally upon us.

This week offers up a few potential trading opportunities, particularly in the big banks. JPMorgan (JPM), Morgan Stanley (MS), Citigroup (C), Wells Fargo (WFC) and US Bank (USB) are the big announcements on the docket and the companies I will be focusing on.

I also want to remind everyone that we will have a subscriber-exclusive webinar every Friday during earnings season, so make sure to sign-up when you get an opportunity.
Earnings season is finally upon us.

This week offers up a few potential trading opportunities, particularly in the big banks. JPMorgan (JPM), Morgan Stanley (MS), Citigroup (C), Wells Fargo (WFC) and US Bank (USB) are the big announcements on the docket and the companies I will be focusing on.



I also want to remind everyone that we will have a subscriber-exclusive webinar every Friday during earnings season, so make sure to sign-up when you get an opportunity.

This week is a complete dud when it comes to earnings announcements (which is why this report is so short this week), but no worries, earnings start in earnest the following week with the big banks (JPM, C, WFC, MS, etc.) all due to report on October 14. Moreover, this Friday we will be having our first subscriber-exclusive webinar at noon EST. In addition to going over several trades in the aforementioned bank stocks using our iron condor approach, I will also be introducing my step-by-step approach to short strangles with a few potential trades.
This week offers a few potential trades in Micron (MU) and Nike (NKE). The following week offers us next to nothing in the way of trades, but no worries, because on October 14 earnings season begins in earnest with the big banks (JPM, C, WFC, MS, etc.) due to report.

I will be introducing short strangles when we enter earnings season and will be covering the strategy during our first webinar of this upcoming earnings report. Regardless, if you wish to use the strategy it will be a wonderful introduction to an approach that many professionals use as their bread and butter strategy. I recently received an email from an old subscriber who has been using the strategy since he learned my approach. My goal was to wait one more earnings season to introduce short strangles, but I have reconsidered after his email and will be utilizing the strategy, in addition to our already established iron condors approach, during this upcoming earnings season.

Earnings season is inching closer, but we are still several weeks away (mid-October) from the big banks kicking the earnings season off.

That being said, the next two weeks should offer some potential trades as FedEx (FDX) and Costco (COST) are due to announce later this week and Micron (MU) and Nike (NKE) announce the latter part of the following week. All four offer potential trades.



If I decide to make a trade, as always, I will send out a trade alert with all the details.

Another week of less-than-stellar earnings season opportunities as we are well entrenched in the earnings season doldrums and the opportunities are, at least for a few more weeks, non-existent.

That being said, I am intrigued by a potential trade in Oracle (ORCL) today. If I’m able to sell a three-strike-wide iron condor for roughly $0.55, I might take a small position. As always, I’ll send out a trade alert if I decide to make a trade. If not, some of you may still find the trade interesting. As a result, I discuss below a potential trade idea in ORCL that consists of a three-strike-wide iron condor. For those interested, check it out in the “Trade Ideas for Next Week” section at the bottom.

Updates
Cabot Options Institute Earnings Trader shows you how to use options to profit during the most profitable period in the market: earnings season. Most people are unaware, but you can reliably collect a month’s worth of gains in a matter of days… and sometimes hours.
Cabot Options Institute Earnings Trader shows you how to use options to profit during the most profitable period in the market: earnings season. Most people are unaware, but you can reliably collect a month’s worth of gains in a matter of days… and sometimes hours.
Alerts
I will be exiting the Home Depot (HD) trade today. I will discuss the trade in greater detail in our upcoming subscriber-exclusive webinar, at noon ET this Friday.
As discussed in our weekly issue last week, and on our weekly call, I will be taking a position in Walmart (WMT) today.
I will be exiting the Disney (DIS) trade today. I will discuss the trade in greater detail in our subscriber-exclusive webinar at noon ET Friday, November 11.
As discussed in our weekly issue this week, and on our weekly call last Friday, I will be taking a position in Disney (DIS) today. DIS is due to announce earnings after the closing bell today (November 8). The stock is currently trading for 99.95.
I will be exiting the Starbucks (SBUX) trade today.
As discussed in our weekly issue, and on our weekly call, I will be taking a position in Starbucks (SBUX) today. SBUX is due to announce earnings after the closing bell today (November 3). The stock is currently trading for 85.26.
I will be exiting the Mastercard (MA) trade today. I will discuss the trade in greater detail in our subscriber-exclusive webinar at noon ET tomorrow, October 28.
As discussed in our weekly issue and on our weekly call, I will be taking a position in Mastercard (MA) today.
I will be exiting the American Express (AXP) trade today. I will discuss the trade in greater detail in our subscriber-exclusive webinar at noon ET today, October 21. Register here.
As discussed in our weekly issue last week, and on our weekly call, I will be taking a position in American Express (AXP) today.
I will be exiting the JPMorgan (JPM) trade today. I will discuss the trade in greater detail in our upcoming subscriber-exclusive webinar, at noon ET today (Friday).
JPM is due to announce earnings Friday (10/14) prior to the opening bell. The stock is currently trading for 108.50.
Portfolios
An updated portfolio for Cabot Options Institute – Earnings Trader.
An updated portfolio for Cabot Options Institute – Earnings Trader.
An updated portfolio for Cabot Options Institute – Earnings Trader.
An updated portfolio for Cabot Options Institute – Earnings Trader.
An updated portfolio for Cabot Options Institute – Earnings Trader.
An updated portfolio for Cabot Options Institute – Earnings Trader.
An updated portfolio for Cabot Options Institute – Earnings Trader.
An updated portfolio for Cabot Options Institute – Earnings Trader.
An updated portfolio for Cabot Options Institute – Earnings Trader.
An updated portfolio for Cabot Options Institute – Earnings Trader.
An updated portfolio for Cabot Options Institute – Earnings Trader.
An updated portfolio for Cabot Options Institute – Earnings Trader.
Strategy