This post was originally written on May 13, 2015 at http://blog.optiontiger.com/earnings-trades/
Almost all of the exciting stocks have finished their earnings cycle for Q1. Overall, the theme for this season was "disappointment". Whether it had to do with bad weather impact on East coast business, strong US dollar or any other reason, most of the stocks that typically perform well, did not.
Even AAPL whose earnings were stellar, was beaten down after the report. Of course, the stock was pumped up going into the report itself, so some of the results were already priced in.Earnings Trades
We took Earnings trades on the following stocks, and these were the results
NFLX - Massive trade ended with a profit of 90%
AXP - Bombed, but we were at break even
FB - Still adjusting to get to breakeven, maybe a loss of 10%
CMG - Went against us in a big way, but we adjusted our way to break even
IBM - another stock that bombed, but we were up 20%
BIDU - up 20%
AAPL - up 1900% (Yes, that is right - cost of trade was $100, Profit was $1900)
AMZN - up 25%
TWTR - Loss of 10%
LNKD - Went against us, but out at breakeven
TSLA - small profit of 10%
PCLN - Profit of 40%
Overall, a very lackluster earnings season, but we managed to come out pretty decent given the circumstances. Please watch the video below for a more detailed explanation of the trades we took in the Earnings trading room.
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Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.