Unofficial Earnings Play Follow-Up - Macy's & Nektar
Unofficial Earnings Play Follow-Up
Hello Smart Option Sellers! Macy's (M) One of the worst things that can happen after an earnings announcement if you're hoping for a big move, is for the stock to go nowhere. And that's exactly what's happening with Macy's right now. Obviously the numbers put out by Macy's were seen as a non-event by the market, and so the stock has hardly budged from yesterday's close. As noted in every alert when I've issued one of these unofficial earnings plays, is that you will see more losing trades than winning trades. This is because earnings are a crap shoot, and the unknown is just too big of a hurdle to overcome if the stock doesn't make a big enough move. I offer these unofficial trades only because we had a large demand for them, and because they truly can produce very large gains. We've already seen that with a few of these trades - some of which have produced 1,000% - 2,000% gains. And lastly, they are only to be considered "fun" trades, ones that we all like to take for a gamble here and there. But please, do not bet the house or make these trades with money you cannot afford to lose. They are low probability trades, and I would hate for anyone to lose a sizable portion of their savings on them. This is why we stick to the high-probability winners of put-selling. These Macy's options expire tomorrow, and I'm seeing both the put options and call options have very litle value to them at the moment. If you want, you can try to recoup a few pennies by selling them back to the market. But make sure your commissions are not more than what the option is worth. If so, it won't be worth selling them. You can also hold onto them until tomorrow. Who knows, maybe Macy's will make a large enough move by then. Bottom-line, this is the reason why it's so important to buy very cheap options on these earnings plays - the probabilities of winning are too low to put too much money on the line. Nektar Therapeutics (NKTR) For anyone who got into the NKTR unofficial earnings play, the stock has now moved down to the $18 level. This should put the value of the $18 put option at a level to where you could be breaking even on the whole trade. The $22 or $23 call options which you might've bought as part of the trade don't have much value anymore, but the put option is making up for that deficit. If the stock continues to decline, the put option will keep gaining in value. The good thing is that these options don't expire until next Friday August 18th, which could give the stock more time to fall, causing the put option to gain even more value. You can opt to sell out of your trades now if you want, or continue to hold for more possible gains. Your call. I won't be commenting on these trades anymore, so it's in your hands now. Market Update We're starting to get a little bit of a pull-back in the market. Could be due to Trump's tough talk on North Korea. A few jitters pushing things lower. Let's see if we can use this sell-off to find some good new put-sells. I'll be watching my screens and if anything pops up, I will send out an alert at that time. Warren Buffett Report I'll keep this notice going in the next few alerts just so everyone has a chance to see it and remember it. If you need the link again, click here to read about it. That's all for now. Continue to work all other trades as instructed and continue to hold all other open positions as-is. See the Current Portfolio below for current prices & instructions. Quick note on the Current Portfolio - if you are a new subscriber and don't have a position yet on any of our trades, make sure you enter your order at the original recommended sell prices. Do not enter any order at current prices unless it's higher than the official recommendation. If you are unsure or have any questions, please ask us! You can always contact us here Regards, Lee Let's Grab That Cash!