COI Earnings Trader Issue: December 26, 2023

I hope everyone had a joyous and memorable holiday season!

As we move into the last trading week of the year, it should be no surprise that there is little in the way of earnings announcements this week. As a result, let’s take a moment to appreciate the time spent with loved ones, the delicious meals shared, and the special traditions celebrated. Wishing you all a happy and prosperous New Year!

Weekly Earnings Commentary

I hope everyone had a joyous and memorable holiday season!

As we move into the last trading week of the year, it should be no surprise that there is little in the way of earnings announcements this week. As a result, let’s take a moment to appreciate the time spent with loved ones, the delicious meals shared, and the special traditions celebrated. Wishing you all a happy and prosperous New Year!

Earnings season “officially” begins in two weeks. On January 12, several of the big banks (BAC, WFC, JPM, C) are due to kick things off. As always, we will look to take on a few trades around that time. Until then, we patiently wait, sitting on our hands, for the earnings calendar to provide us with ample opportunities.

We’ve made 39 trades in total with a win ratio of 76.9% (30 out of 39 winning trades).

If you have any questions, please do not hesitate to email me at andy@cabotwealth.com.

Weekly Watchlist

No stocks on the watchlist this week.

Top Earnings Options Plays

Here are a few top earnings options plays for this week (12/26 to 12/29) if you are so inclined:

Trade Ideas for This Week

As a reminder, you will quickly begin to notice I tend to stick with stocks that have high liquidity as it’s far easier to get in and out of a trade. Medium liquidity offers tradable options, but sometimes the bid-ask spread is wider, which means a greater potential for more price adjustments, making entering and exiting a trade difficult from time to time. Remember, there are roughly 3,200 tradable stocks with options and 11% have medium liquidity while only 3% have what’s considered high liquidity.

Potential Trade Ideas for This Week (Not Official Trade Alerts)

No potential trades this week.

As always, if you have any questions, please do not hesitate to email me at andy@cabotwealth.com.

The next Cabot Options Institute – Earnings Trader issue will be

published on January 2, 2024.

Andy Crowder

Andy Crowder is a professional options trader, researcher and Senior Analyst at Cabot. Formerly with Oppenheimer & Co. in New York, Andy has leveraged his investment experience to develop his statistically based options trading strategy which applies probability theory to option valuations in order to execute risk-controlled trades. This proprietary strategy has been refined through two decades of research and real-world experience and has been featured in the Wall Street Journal, Seeking Alpha, and numerous other financial publications. Andy has helped thousands of option traders learn and implement his meticulous rules-driven options trading strategies through highly attended conferences, one-on-one coaching, webinars, and his work as a financial columnist. He currently resides in Bolton Valley, Vermont and when he’s not trading, teaching and writing about options, he enjoys spending time with his wife and two daughters, backcountry skiing, biking, running and enjoying all things outdoors.