Trade Alert: Earnings, 4/30/2024
One of our top names reports this week
Why We’re Betting On This Stock Ahead Of Earnings
It’s one of the stocks we bet on earlier this month for thematic reasons.
It’s currently one of Portfolio Armor’s top ten names.
It’s pulled back ahead of earnings.
Estimize and Zacks’ most accurate analyst both see it beating Wall Street’s whisper number.
That said, earnings trades are essentially coin flips (though with slightly worse odds, as the coin can land on its side too), so we’re placing a trade that will give us a >200% return if it works.
Details below.
Our Bullish Earnings Trade
The stock is Coinbase (COIN 0.00%↑), and our trade is a vertical spread expiring on May 3rd, buying the $230 strike calls and selling the $232.50 strike calls for a net debit of $0.60. The max gain on 5 contracts is $950, the max loss is $300, and the break even is with COIN at $230.60. This trade filled at $0.60.
Exiting This Trade
I’m going to open a GTC order to exit at $2.25 to $2.35 and lower that price, as necessary, as we approach expiration.
Exited the COIN trade at $0.10 on 5/3/2024, for a loss of 83%.
Huge beat for COIN, but the stock's down a few percent after hours. Will place a longer term bet on this one soon.