Trade Alert: Two More Earnings Trades

One reports after the close. Plus, a warning about an open position.

(Erik Scheel/Pexels)

Note: I’ve unlocked the earnings trades portion of this post as both stocks have released earnings now, and both posted big earnings beats pushing their respective call spreads in the money.

A Bullish Earnings Trade

This is another one based on social data, but it’s also supported by technicals (8 out of 10 overall rating) and fundamentals (Piotroski F-Score of 8). The company is Sprout’s Farmer’s Market, Inc. ( SFM 0.00%↑ ), and this is the trade I placed:

A call spread expiring on May 19th selling the $36 strike calls and buying the $35 strike calls for a net debit of $0.45. The break-even here would be with SFM at $35.45, and the max gain on 10 contracts would be a gain of $385 versus a max loss of $315.

Another Bullish Earnings Trade

Social data again, plus phenomenal technicals (10 out of 10). And I think this was also a recent Portfolio Armor top name: Wingstop, Inc. ( WING 0.00%↑ ), and this is the trade I placed:

A vertical spread expiring on May 19th, buying the $210 strike calls and selling the $220 strike calls for a net debit of $3.05. Max gain on one contract: $695; Max loss: $305; Break-even: WING above $213.05.

A Warning

Recall I bought puts on Coinbase, Inc. ( COIN 0.00%↑ ) in late March.

I’m still bearish on it over the next several months, and its fundamentals and technicals are still weak, but social data is very bullish ahead of its earnings on Thursday. So I may exit ahead of earnings or even place a bullish short term bet on it ahead of earnings. I’ll let you know in either case.