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If you have not read any of my previous articles on weekly earnings trades on Seeking Alpha, please check them out. They will give you a general idea of how I like to trade using the 'strangle' option strategy.

The "strangle" option strategy is when you purchase call and put options that are out-of-the-money, but with the same expiration date. The 'straddle' is when you buy the same expiration and the same strike price.

As with any trade, some will work out a lot better than others, so please check out my previous articles and you can make a decision if you want to use the strangle option strategy. I only choose stocks that have a history of making larger moves post-earnings report and with large 52-week price ranges. There will be times when the trade takes more time than expected. This is also why I like to have at least the next month forward on my trades.

Here are the trades for next week:

Monday, December 19, 2011 - No Trades

Tuesday, December 20, 2011

1.) Jabil Circuit, Inc. (NYSE:JBL) - is scheduled to report earnings after the market closes on Tuesday.

Jabil Circuit provides electronic manufacturing services and solutions worldwide. The company offers electronics and mechanical design, production, product management, and after-market services to companies in the aerospace, automotive, computing, consumer, defense, industrial, instrumentation, medical, networking, peripherals, solar, storage, and telecommunications industries.

Jabil Circuit is currently trading at $20.26/share. The 52-week range is $13.94 - $23.09.

52wk high: 23.09
52wk low: 13.94
EPS: 1.73
PE: 11.90
Div Rate: 0.28
Yield: 1.3559
Market Cap: 4.21 B
Volume: 1.5 M

Jabil Circuit has been consistent in providing large moves around their earnings releases. Here is a closer look at their past four quarters:

On September 27, 2011 Jabil Circuit released their fourth-quarter earnings and saw the following price move:

Date Open High Low Close Volume
Sep 29, 2011 19.22 19.22 18.00 18.65 7,390,544
Sep 28, 2011 18.88 19.30 18.53 18.84 17,583,373
Sep 27, 2011 17.30 17.78 17.11 17.38 6,873,907
Sep 26, 2011 16.46 16.75 15.65 16.73 4,593,937

From a low of $15.65/share on the day before reporting earnings to a high of $19.30 on the day after releasing their report, this represented a 23.3% increase in share price.

On June 21, 2011, Jabil Circuit released their third-quarter earnings and saw the following price move:

Date Open High Low Close Volume
Jun 23, 2011 19.20 19.26 18.76 19.10 7,927,146
Jun 22, 2011 19.22 20.20 19.22 19.45 9,274,098
Jun 21, 2011 18.35 18.97 18.26 18.85 6,017,118
Jun 20, 2011 18.16 18.40 17.83 18.26 4,204,074

From a low of $17.83/share on the day before reporting earnings to a high of $20.20/share one day after reporting, this represented a 13.2% increase in share price.

On March 22, 2011, Jabil Circuit release their second-quarter earnings and saw the following price move:

Date Open High Low Close Volume
Mar 24, 2011 21.08 21.68 20.82 21.42 5,339,996
Mar 23, 2011 20.42 21.30 20.10 20.99 17,450,611
Mar 22, 2011 19.50 19.50 18.87 18.93 6,415,499
Mar 21, 2011 18.95 19.62 18.89 19.51 4,773,868

From a low of $18.89/share on the ay before reporting earnings to a high of $21.30/share one day after the report, this represented a 12.7% increase in share price.

On December 20, 2011, Jabil Circuit released their first-quarter earnings and saw the following price move:

Date Open High Low Close Volume
Dec 21, 2010 18.89 19.67 18.63 19.55 15,829,553
Dec 20, 2010 17.77 17.81 17.35 17.66 6,088,495
Dec 17, 2010 17.01 17.49 16.98 17.47 4,476,169

From a low of $16.98/share on the Friday before they released their earnings on Monday to a high of $19.67/share on the day following earnings, this represented a 15.8% increase in share price.

What stands out on their last four earnings is that the stock has moved up in price after each release. Also, volume has been extremely high after each release.

Currently, I am focusing on the January 2012 $21.00 strike call options and the January 2012 $19.00 strike put options.

2.) Nike Inc. (NYSE:NKE) - is scheduled to report earnings after the market closes on Tuesday.

Nike Inc. engages in the design, development, marketing, and sale of footwear, apparel, equipment, and accessory products for men, women, and children worldwide.

Nike is currently trading at $96.95/share. The 52-week range is $69.43 - $98.25.

52wk high: 98.25
52wk low: 69.43
EPS: 4.61
PE: 21.20
Div Rate: 1.44
Yield: 1.4742
Market Cap: 44.95 B
Volume: 2.71 M

Nike Inc. has been doing very well lately. This is a stock that can possibly breakout if their earnings report is solid. The stock has seen moderate to large price moves in the past after reporting earnings. Here is a closer look at their last four releases:

On September 22, 2011, Nike released their first-quarter earnings and the stock saw the following price move:

Date Open High Low Close Volume
Sep 23, 2011 87.78 89.99 86.69 88.64 9,104,896
Sep 22, 2011 83.19 84.71 82.22 84.18 5,940,845
Sep 21, 2011 89.24 89.62 85.55 85.74 5,110,763

From a low of $82.22/share on the day they were set to report earnings after the market closed to a high of $89.99 on the day after the release, this represented a 9.4% increase in price.

On June 27, 2011, Nike released their fourth-quarter earnings and the stock saw the following price move:

Date Open High Low Close Volume
Jun 29, 2011 89.66 90.35 88.18 89.78 6,356,905
Jun 28, 2011 85.27 90.58 85.16 89.90 15,114,285
Jun 27, 2011 80.92 82.77 80.92 81.62 5,748,206

From a low of $80.92/share on the day before releasing their earnings to a high of $90.35/share on the day after the release, this represented a 11.6% increase in price.

On March 17, 2011, Nike released their third-quarter earnings and the stock saw the following price move:

Date Open High Low Close Volume
Mar 18, 2011 77.99 78.65 76.83 77.59 19,723,878
Mar 17, 2011 85.57 85.74 84.49 85.41 3,455,599
Mar 16, 2011 85.00 85.87 84.05 84.82 2,506,226

From a high of $85.87/share on the day before releasing their earnings to a low of $76.83 on the day after the release, this represented a 10.5% decrease in share price.

On December 21, 2010, Nike released their second-quarter earnings and the stock saw the following price move:

Date Open High Low Close Volume
Dec 22, 2010 87.00 88.25 86.60 86.95 8,306,004
Dec 21, 2010 91.00 92.49 90.48 92.30 6,250,006
Dec 20, 2010 90.53 90.87 89.63 90.27 2,173,297

From a high of $90.87/share on the day before releasing earnings to a low of $86.60/share on the day after the release, this represented a 4.7% decrease in share price.

Currently, the January 2012 $100.00 strike call options and the January 2012 $92.50 put options seem reasonably priced. If you do plan to buy any contracts, I would purchase them as soon as possible.

You can always take a more bullish position if you think Nike is going to breakout over $100.00/share.

3.) Shuffle Master, Inc. (NASDAQ:SHFL) - is scheduled to report their earnings after the market closes on Tuesday.

Shuffle Master, Inc. develops, manufactures, and markets technology and entertainment-based products for the gaming industry worldwide. It leases, licenses, and sells its products.

Shuffle Master is currently trading at $11.86/share. The 52-week range is $7.35 - $11.90.

52wk high: 11.90
52wk low: 7.35
EPS: 0.51
PE: 23.20
Div Rate: N/A
Yield: N/A
Market Cap: 642.29 M
Volume: 233.31 k

Shuffle Master is usually very reliable providing a large move after releasing their earnings. Here is a closer look at their past releases and price moves:

On August 31, 2011, Shuffle Master reported their third-quarter earnings and the stock saw the following price move:

Date Open High Low Close Volume
Sep 2, 2011 9.61 9.61 9.61 9.61 390,000
Sep 1, 2011 9.19 10.36 8.97 10.01 966,463
Aug 31, 2011 8.70 9.42 8.59 8.86 438,511
Aug 30, 2011 8.40 8.69 8.22 8.68 323,600

From a low of $8.22/share on the day before releasing their earnings to a high of $10.36/share one day after, this represented a 26% increase in share price.

I would be extremely careful here not to put too much of an investment in this trade. The stock could really pop or stay stagnant. I am listed it as a potential play because of past history of making very large price moves post-report.

The January 2012 $12.00 strike call options and the January 2012 $11.00 strike put options is really the only way to go here. I would pay no more than $0.90 to place this trade as a whole.

Wednesday, December 21, 2011

1.) CarMax Inc. (NYSE:KMX) - is scheduled to report earnings before the market opens on Wednesday.

CarMax Inc. operates as a retailer of used vehicles in the United States. It also sells vehicles that do not meet its retail standards to licensed dealers through on-site wholesale auctions, as well as sells new vehicles under franchise agreements.

CarMax is currently trading at $30.99/share. The 52-week range $22.77 - $37.02.

52wk high: 37.02
52wk low: 22.77
EPS: 1.79
PE: 17.40
Div Rate: N/A
Yield: N/A
Market Cap: 7.02 B
Volume: 1.56 M

I am expecting a large price move for CarMax on this release. In the past, CarMax has consistently delivered profitable trades using a strangle strategy. Here is a closer look at their past earnings releases:

On September 22, 2011 CarMax released their second-quarter earnings and the stock saw the following price move:

Date Open High Low Close Volume
Sep 23, 2011 24.03 24.58 24.00 24.12 4,011,415
Sep 22, 2011 25.10 25.99 23.84 24.41 12,819,798
Sep 21, 2011 28.15 28.39 27.31 27.43 3,150,321

From a high of $28.39/share on the day before releasing their earnings to a low of $24.00/share on the day after the release, this represented a 15.4% decrease in price.

On June 22, 2011, CarMax released their first-quarter earnings and the stock saw the following price move:

Date Open High Low Close Volume
Jun 24, 2011 32.55 32.61 31.74 31.93 4,570,441
Jun 23, 2011 32.39 32.99 31.87 32.55 4,574,163
Jun 22, 2011 33.15 33.49 32.24 32.66 9,106,036
Jun 21, 2011 29.29 30.60 28.99 30.52 4,837,145

From a low of $28.99/share on the day before they released their earnings to a high of $32.99/share on the day after the release, this represented a 13.7% increase in share price.

On March 31, 2011, CarMax released their fourth-quarter earnings and the stock saw the following price move:

Date Open High Low Close Volume
Apr 1, 2011 32.38 33.08 32.14 32.53 4,241,704
Mar 31, 2011 33.47 33.65 31.85 32.10 9,315,346
Mar 30, 2011 34.28 34.63 33.55 34.59 2,799,846

From a high of $34.63/share on the day before they released their earnings to a low of $31.85/share on the day of the release before the markets opened, this represented a 8% decrease in share price.

On December 21, 2010, CarMax released their third-quarter earnings and the stock saw the following price move:

Date Open High Low Close Volume
Dec 22, 2010 33.13 33.18 32.03 32.30 3,897,418
Dec 21, 2010 34.46 34.50 32.20 33.17 11,182,392
Dec 20, 2010 35.77 36.00 35.17 35.90 2,925,273

From a high of $36.00/share on the day before they released their earnings to a low of $32.03/share on the day after the release, this represented a 11% decrease in share price.

Currently, I like the January 2012 $32.50 strike call options and the January 2012 $29.00 put options. The ideal scenario is if you can place this trade for a $2.00 or less. CarMax is a low-risk trade.

Thursday, December 22, 2011

1.) Lindsay Corporation (NYSE:LNN) - is scheduled to report earnings before the market opens on Thursday.

Lindsay Corporation designs, manufactures, and sells irrigation systems that are primarily used in the agricultural industry to increase or stabilize crop production while conserving water, energy, and labor in the United States and internationally.

Lindsay Corporation is currently trading at $53.22/share. The 52-week range is $46.03 - $85.87.

52wk high: 85.87
52wk low: 46.03
EPS: 2.90
PE: 18.60
Div Rate: 0.36
Yield: 0.676437
Market Cap: 674.57 M
Volume: 78.21 k

Lindsay Corporation has also been consistent with providing large moves after reporting earnings. There is a large 52-week price range here and could really go either way, depending on how this report turns out.

Here is a closer look at their last four earnings and the price moves:

On October 13, 2011, Lindsay Corporation reported their fourth-quarter earnings and saw the following price move:

Date Open High Low Close Volume
Oct 14, 2011 57.30 58.60 55.70 58.53 201,488
Oct 13, 2011 56.02 59.59 54.21 56.93 395,197
Oct 12, 2011 59.24 61.18 58.82 60.27 335,593

From a high of $61.18/share on the day before hey released their earnings to a low of $55.70 on the day they released their earnings before the markets opened, this represented a 11.3% decrease in share price.

On June 29, 2011, Lindsay Corporation released their third-quarter earnings and saw the following price move:

Date Open High Low Close Volume
Jul 1, 2011 70.39 70.39 70.39 70.39 261.000
Jun 30, 2011 69.24 70.14 68.20 68.80 410,841
Jun 29, 2011 70.26 70.98 66.33 68.99 865,589
Jun 28, 2011 63.65 66.00 63.65 65.62 239,695

From a low of $63.65/share on the day before they released their earnings to a high of $70.98 on the day they released their earnings before the markets opened, this represented a 11.5% increase in share price.

On March 30, 2011, Lindsay Corporation reported their second-quarter earnings and saw the following price move:

Date Open High Low Close Volume
Apr 1, 2011 79.94 79.94 76.88 77.35 152,230
Mar 31, 2011 78.69 79.43 76.64 79.02 189,846
Mar 30, 2011 82.19 85.87 77.18 79.19 1,042,151
Mar 29, 2011 75.76 77.38 73.90 76.13 159,210

From a low of $73.90/share on the day before releasing their earnings to a high of $85.87/share on the day they released their earnings before the markets opened, this represented a 16.1% increase in share price.

On December 22, 2010, Lindsay Corporation released their first-quarter earnings and saw the following price move:

Date Open High Low Close Volume
Dec 23, 2010 63.15 61.82 60.45 61.82 360,400
Dec 22, 2010 63.61 64.86 61.58 62.00 776,094
Dec 21, 2010 68.28 68.50 66.09 67.55 288,810

From a high of $68.50/share on the day before they released their earnings to a low of $60.45/share on the day after they released their earnings, this represented a 11.7% decrease in share price.

Currently, I like the January 2012 $55.00 strike call options and the January 2012 $50.00 strike put options.

The cost of this trade is not cheap to place. Always be sure to place a limit order. The most I would pay to complete this trade is with a $4.90 limit order on the bid/ask price.

Friday, December 23, 2011 - No Trades.

Good luck.

Source: Option Plays To Consider For Stocks Reporting Earnings The Week Of December 19