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Earningsplay

SNAP: How to proceed in this post-earnings?Hello traders and investors! Thanks to the earnings report , SNAP is flying today. But how to proceed when this happens? Is it time to buy, to sell, to go short, or just do nothing? The charts will give us an answer. If you are in SNAP, I always advise to book at least half of your profits in a day like today, just in case, and then set a technical stop-gain . On SNAP, the technical stop-gain is below the $ 73.59, as this point was the previous All-Time High, and it is supposed to work as a support in the future. In the next week I would just set a trailing stop-gain under the previous day’s low. If SNAP keeps going up, that’s great. If it drops, then ok, time to exit. Is there any chance that it’ll fill this gap? Yes, but I find this unlikely, at least for now. This is a Breakaway Gap enhanced by the earnings report, and SNAP did a breakout from the ATH by doing this gap (I like to call this Monster Gap ). The last time this happened on SNAP the momentum was so strong that it prevented even a pullback. Let’s remind SNAP on October 2020: What could happen on SNAP right now, if it can’t keep pushing up, is a sideways correction , until the 21 ema catches up with the price again in a few weeks, to offer us a new support level on SNAP. If I were out and wanted to buy SNAP, I wouldn’t count on a pullback, but I would wait for it to cool down a little bit more, and for the Risk/Reward ratio to make sense again. If I buy right now, it would feel like I would be buying from someone who bought at the last dip, and will use me to book profits. Eventually, the 21 ema will get closer to the price, and we’ll see a good opportunity then. For now, as someone who’s out, I’ll just stay out. There are many more interesting stocks around. Remember to follow me to keep in touch with my daily studies, and if you liked this idea, please, support it! Have a good weekend!
Editors' picks
NYSE:SNAP
by Nathan_The_Finance_Hydra
23
WISH Trend Analysis following EarningsIf WISH misses with earnings this upcoming week, technicals and projected fundamentals support a break below valuation in the lower $11 range. With a test of $9.35 for the next earnings bottom range. It is likely to find support in this range and move back into test range of $11.05 and $12.18 into the following earnings. If WISH continues to beat expectations and hold progression, they have a future valuation of around $20-$21. A nice move to set up reaching this evaluation would be filling supply and demand imbalances between $15.50 and $17.50, with retracements back into $12.50-$13.00 for a move into next earnings. Good earnings there would have the equilibrium to test above range of valuation as support, moving into this years full earnings release next year during Q1 2022.
W
by rickhubbard10
1
PERI : COIL / SWING TRADEPerion Network: On The Verge Of Breaking Out To New Multi-Year Highs Israel-based provider of digital advertising solutions raises guidance for the second time in two months. Outperformance attributed to better-than-expected revenue synergies from recent acquisitions as well as higher demand for the company's Connected TV and video offerings. Search business de-risked by recent four-year contract extension with Microsoft. Management hinted to renewed growth opportunities in the press release. Company trades at a massive discount to advertising pure plays The Trade Desk and Magnite. Watch for strong guidance on the company's upcoming fourth quarter and full year 2020 earnings report on February 9. SOURCE: Henrik Alex, SeekingAlpha seekingalpha.com
NASDAQ:PERILong
by TradingMavericks
1
Earnings Straddle. Part 1: Selecting a stock to straddle.Today I have selected Amazon (AMZN) as a good stock to straddle because it is reporting earnings in 3 days (actually 2), it is reporting earnings after market close, it is a highly liquid stock, and it has shown previous volatility during earnings reports in the past. ------------ This will be a 3 part series detailing: 1) Selecting a stock with intention to straddle. 2) Placing straddle orders. (If market conditions hold this will be the simple version known as "putting on" the straddle.) 3) Exiting the straddle. (I will get that reading done sooner than later. Plenty of time to digest and make a post about it.) ------------ Stay tuned for Part 2 coming on Thursday, 4/29.
NASDAQ:AMZN
by emehoke
$ENPH Bullish Earnings PlayI trade almost entirely using options, shares are typically only there to hedge Greeks or if a stock has a terrific opportunity to sell covered calls. When you are trading in options you need to understand that while technical analysis and fundamental analysis are still important, what is usually most important is how the options chain looks-- what is the Implied Volatility curve, the skew/smile, and etc. This is primarily why Earnings present such an incredible opportunity because people throw money all over the place betting on some kind of move, and usually over pay. So note that this play is less about Enphase Energy as the company or what support/resistance levels I see and etc, its more of a "This is a killer value" option spread. Background Enphase is a solar energy stock. Solar stocks and electric vehicle (EV) stocks as well as some others have been really beat up recently but I've been seeing a ton of reversals which lead me to believe another "trash flash" rally has just begun. Looking at $IWM or $US2000 you can see a wedge or sort of diamond top has broken through to the upside. Technical My bottom pane has my Price Action Index indicator, which shows a breakout to the bull side already underway on this stock. You can see that on the Bollinger Band as well-- it was squeezed in consolidation and now the band is expanding in size as the stock hovers above the top band. Options Analysis There are some levels of resistance above that I think this stock can go through pretty easily until it gets to that $190-$210 cloud. This is so obvious that options traders have attacked OTM calls for near-term expirations pretty aggressively. Here is a (crude) diagram of the $ENPH smile graph for this Friday’s expiration-- This smile is called a “forward skew”. Note that it is INSANELY weighted towards the bullish side. Options traders are pricing in the potential for a giant move up. Therefore, we try to exploit it . As this near-term 4/30 expiration has priced in OTM calls very expensively, the next expiry afterwards, 5/7 has about 20% lower IV At The Money, and OTM we’re looking at about 25% less IV. It looks like this: $200 Call for 4/30 has an IV midpoint of 120 $195 Call for 5/7 has an IV midpoint of 90 This spread is affectionally dubbed the “Poor Man’s Covered Call” but it is simply a Diagonal Call. It is somewhat similar to being long shares, however I want to limit my risk to the downside and not get stuck holding shares for a long time. If it does backfire by a lot then that means my long calls will go worthless If the stock doesn’t move at all from earnings, I make the decision of: rolling my short calls to my long date (5/7), buying to close the short calls after they’ve been IV Crushed and hoping for some upside to come later, or taking a small loss (say $200-400) If it goes mildly up, I make a mild profit If it hits $200 there and expires at that price, I take my maximum profit: my choice of closing the spread then, holding my long call (I would probably roll another short one against it) If ENPH does some insane move over 3 standard deviations into the moon, say $240, I still make profit but that short $200 call digs at it (I have more extrinsic/time value with my option being 1 week further to expiry than the short one does) What is really nice about this setup is you have ALL of the Greeks working with you! I am positive Delta, very positive Theta , a smidge positive Gamma, positive Vega, and even positive Rho (not that that matters much here). Past Earnings What I love about this earnings play is that of the past 12 earnings reports Enphase has had, only 2 have had a move to the downside . The other 10 have all been positive-- +1.0%, +4.2%, +8.8%, +9.5%. +9.5%, +14.0%, +18.7%, +29.3%, +30%, and +42.4%. A move up to $220 is not out of this realm of possibility. But all I am looking for is a move up that is at least 2.0% or so. And the beautiful thing is that the Average Move of the last 12 earnings comes out to +/- 16.6%, which would be about $201. Trade Entry I got my spread filled at a $1.98 debit. I put my walk limit order in and started working on this idea and got filled there. I am plenty fine with that fill but if you are patient the Bid-Ask spread is currently $1.72-$2.33 with a mid of $2.03. From my personal experience, getting filled can be a tedious process because I want the best possible price but I also hate being too cheap and watching a good trade pass me by. In the end a nickel or dime difference on the fill is not the killer, it is the trade not working. Best of luck. Let me know if you have any thoughts or ideas or are playing this as well. EARNINGS ARE TOMORROW/TUESDAY AFTER MARKET CLOSE! Please remember that this is NOT financial advise and I have no certifications or qualifications to give financial advise.
NASDAQ:ENPHLong
by chrism665
1
Goldman Sachs Reports Earnings Next WeekThe last two weeks have seen a sharp pivot toward technology stocks and the Nasdaq. But traders might want to remember that big financials including Goldman Sachs kick off earnings season next week. Several patterns appear on the chart. First, GS has pulled back near its 50-day simple moving average (SMA) but not quite touched it. Second, its range has been tightening. Bollinger Band Width is down to its tightest levels since mid-December. This creates the potential for price expansion. Finally, stochastics recently showed an oversold condition. Aside from earnings (on Wednesday, April 14), the economy is a potential catalyst for GS. Most data continues to point toward a strong recovery – especially today’s higher-than-expected producer price index. TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
NYSE:GSLong
by TradeStation
Nike Is Trying to Break Out Before EarningsNike has taken a long pause, but now the sneaker giant may be trying to break out with earnings due Thursday afternoon. NKE beat estimates on December 21, eliciting a wave of bullish analyst notes. However the stock rallied before the report, and proceeded to ease lower for the next 2-1/2 months. The result has been a price channel with a slight downward slope. Given its big run off last year's, that’s starting to resemble a long bullish flag. (Notice the similar pattern between September and November – also following a strong quarterly report.) Interesting things happened on March 5. NKE briefly undercut its January low and tested levels previously seen in mid-November. The shares came surging back to end the session in the green, resulting in a false breakdown and bullish hammer. They kept running from that point and yesterday managed to close above the top of the descending channel. Given NKE’s exposure to the economic reopening and strong results lately, traders may expect more good news this week. Related names like Foot Locker, Under Armour and Skechers USA have also been hitting new highs. TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
NYSE:NKELong
by TradeStation
6
It's a bargain, but not for long!CSLT is reporting earnings today so this is fitting. Looking at the monthly chart over the course of two years you can see the downward channel it's been following. Due to a string of better than expected earnings, it broke up through a major downward trendline that was weighing it down. My guess is that they'll beat earnings today as they recently had COVID related contracts. We can expect it testing the upper channel and likely breaking through it to test the moving average at ~$2.50. Then the moon perhaps... As for the long term, you can see a cup and handle pattern forming which could make this thing a real rocket.
CLong
by RossJohnson
$CASA strongest Q4 with record wireless revenueIn the fourth quarter of 2020, Casa Systems' revenue rose 7% year over year to $120.5 million. Adjusted earnings increased from $0.15 to $0.27 per diluted share. Your average Wall Street analyst would have settled for earnings of roughly $0.11 per share on sales near $107.5 million. The company booked 26 purchase orders for 4G and 5G wireless systems in the fourth quarter, making wireless products the largest revenue generator in this period at 42% of total sales. That's a significant shift from the year-ago quarter, where cable broadband equipment accounted for a leading 48% of Casa's total sales. Wireless sales nearly doubled in fiscal year 2020, while fixed telco network sales posted even faster growth of 150%. The laggard in Casa's portfolio these days is the cable networking segment, which CEO Jerry Guo sees as a "steady and consistent" contributor rather than a growth driver. www.fool.com “We had one of our strongest quarters with record wireless revenue and a healthy backlog to support our top-line growth in 2021,” finance.yahoo.com
C
by AlenCiken