Report Card Season is Open
Hello Bandits,
We heard you loud and clear – More opportunities to trade live! When we trade together, we learn together. We’re continuing our weekly live trading webinar open to all of our newsletter subscribers.
Click the button below to sign up and we’ll send you the details when we finalize them later this week.
Now back to it…
What Are they
Earnings Reports (ERs) are a crucial aspect of the financial markets that investors and traders alike eagerly await. These reports are released quarterly and provide detailed insights into the company’s financial performance during the past quarter. They include essential metrics such as revenue, earnings per share (EPS), profit margins, and forward-looking guidance from the company’s management. Earnings Reports serve as a vital tool to assess a company’s health, growth trajectory, and overall prospects. The market’s reaction to these reports can be significant, with stock prices often experiencing notable fluctuations based on whether the results exceed, meet, or fall short of expectations. Consequently, navigating the earnings season requires careful analysis, strategic planning, and swift decision-making to capitalize on opportunities and mitigate risks.
Welcome back to Theta Bandits Top Pick Tuesday, where we strive to bring you relevant content by searching the markets for what could be a new potential winner in any portfolio. This week is a big week for names reporting, here is what we will be watching and why.
Opinion
In July we brought you information about a group of stocks making up a significant percentage of the weight of the index is known as the Magnificent 7 (AAPL, AMZN, GOOG, META. MSFT, NVDA and TSLA). This week’s ERs for October 28th, 2024, five of the Magnificent 7 are reporting coupled with the US Federal election next week, this gives us a big and potentially very volatile week for the market.
Included in the visual below, the Magnificent 7 names reporting have been circled in red. In blue we are highlighting those names which have a Top Pick associated with them. Finally in green we are sharing a bonus of five names in which trades have been taken in our server through various methods using both options and shares.
- Magnificent 7 reporting: GOOG, MSFT, META, AMZN, AAPL.
- Top Picks reporting : F, PFE, AMD, V, RIOT, MO, INTC, XOM.
- Theta Bandits trades reporting: SOFI, PYPL, MCD, CMG,COIN.
Plan
The volatility around ER’s is very scary. This is a suitable time to review your portfolio and potentially take advantage of odd behaviour in the market after the results have been released. Here are three potential scenarios to look for:
- If the stock rallies: securing profit is always a good was to mitigate future risk.
- If the stock declines: re-evaluate the position in your portfolio and make sure your thesis for the trade is still intact. Manage your position and follow your risk profile that you laid out when planning your entry.
- A company may have a great ER, but the market does not agree, and the stock reacts negatively. This could potentially provide an opportunity to pick up shares on weakness.
We discuss potential methods to attack these positions through our discord server and we will discuss this week’s ER’s and trades live IF you sign up to attend our weekly Theta Bandits Webinar – When we trade together, we learn together!
RISK
The goal is to grow capital by securing profits along the way and limiting losses. Plan your trade with-in your risk tolerance allowing time for success while updating limits and exit points to mitigate risk. Remember to be cautious as ER season is very volatile.
If you’ve been finding our picks helpful, imagine what the live version holds. You know what to do 👇
Disclaimer: This article is for informational and educational purposes only, not investment advice. We recommend researching and consulting with a financial advisor before making investment decisions. All actions based on this information are at your own risk.
