COI Earnings Trader Issue: January 16, 2024

As I discussed in our first subscriber-only webinar of 2024, the week after the initial big banks announce is slow. Yes, there are a few more big banks that announced prior to the opening bell (GS, MS) this morning, but, as we talked about, we didn’t really want to hold an earnings-based position over the long weekend.

Weekly Earnings Commentary

Before I get started, I want to remind everyone that we will be starting our weekly Friday calls this week. If you wish to attend the subscriber-only call, please click here to sign up.

No worries, we won’t be resting on our laurels for long, because next week offers a plethora of potential trades including JNJ, MSFT, V, AXP… and several others. I’ll be going over all of these potential trades, taking questions and much more in our upcoming subscriber-only webinar this Friday.

We’ve made 40 trades in total with a win ratio of 77.5% (31 out of 40 winning trades).

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

Top Earnings Options Plays

Here are a few top earnings options plays for this week (1/15-1/19) 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)

As we discussed in our subscriber-only webinar last week, there are no trade ideas for this week. But don’t worry, the following week earnings announcements start in earnest with five to seven potential ideas in the mix.

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 22, 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.