Earnings coming out after hours present us with a mixed picture and some opportunities to quickly mention.
Amazon Stock (AMZN)
As much as I do not like investing capital in a risky asset as speculative as Amazon, they do continue to grow their revenue numbers.
I am planning a small trade on Friday or Monday. I plan to buy the July 21 2017 $1000 call strike. It was $12.05 at the close on Thursday. I am only buying 5 call contracts but I do think the company will easily move above $1000 by the middle of July.
This risks $6025.00 but I think the chance of a decent return is very high.
Intel Stock (INTC)
They are falling after hours on what many analysts believe are disappointing numbers. If the stock dips strongly at the open on Friday I will sell puts at the $35.50 or $36 put strike depending on the price I can get. I will use May 19 expiry.
Microsoft Stock (MSFT)
Microsoft also reported numbers that while decent on earnings were a bit light on revenue. They did not miss by much but often that is all it takes to get investors in a selling mood,
Depending on what happens at the open or early morning I might get a chance to sell more naked puts. I like the $63.50 put strike or lower depending on how good the put premiums are. I will be using May 19 expiry.
Thank you for not posting these trades to my Public Yahoo Forum. Any questions can be emailed directly to me at members@fullyinformed.com or you can create a new topic in the private members forum.
Disclaimer: There are risks involved in all investment strategies and investors can and do lose capital. Trade at your own risk.