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Earnings Trader
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COI Earnings Trader Issue: May 30, 2023

Weekly Earnings Commentary

With earnings season behind and few earnings announcements scheduled for the week ahead, the only announcement worth a look this week is Lululemon (LULU). Even so, I wouldn’t be surprised to see no trades this week. This does not mean that we will not have a trade alert or two as we move into the earnings doldrums for the next several weeks.

We had another successful trade last week, our largest gain of this earnings cycle, a one-day 10.4% gain in Costco (COST). Thankfully, our screener told us to avoid Nvidia (NVDA), which certainly would have been a loser with a move of 24% to 26% the day of the announcement. After a bleak start to the earnings season, with two out of three losing trades, we finally came out ahead on the very last trade during the earnings window. In total we placed eight trades this earnings season, with a cumulative gain of 4.2%.

Our overall return is 49.2% – as I stated last week, certainly nothing to write home about, but also no complaints as we thankfully sit in positive territory during what has been an incredibly challenging market for all participants over the past year.

If you have any questions, please do not hesitate to email me at

Weekly Watchlist

  • Lululemon

Top Earnings Options Plays

Here are a few top earnings options plays for this week (5/30 to 6/2) if you are so inclined:


Images Courtesy of Slope of Hope

Trade Ideas for Next 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

With earnings season behind us there are no earnings announcements worth our consideration this week.

As always, if you have any questions, please do not hesitate to email me at

The next Cabot Options Institute – Earnings Trader issue will be published on June 5, 2023.