Earnings Movers: Identifying Opportunity

Hi traders!

I hope you were able to check out Thursday’s edition of the newsletter, Earnings in Focus: The Week Ahead for February 13th-17th, because stocks are already moving!

PLTR: A Big Earnings Mover

Palantir was up 16% post-market yesterday after reporting its first profitable quarter. During the overnight session, it briefly moved above $9, which, if it holds, would mean it erased losses made and is trading at a high not seen since last August. Now, it’s still a far cry from the $45 all-time high, but a 16% overnight move shows what can happen when a company reports earnings.

With the move in PLTR, the week is just beginning. There is still a long list of companies reporting this week, with many potential opportunities.

Remember the checklist that I wrote for you all last week? In my segment yesterday on Making Money with Charles Payne, he liked it so much that he decided to feature it on his show!

Our Earnings Trade Checklist

Earnings provide different opportunities in the options market. I discussed how and why with Charles. Click on the image below to get a full link to the segment.

I look forward to discussing the rest of my earnings checklist next time I join his show. Of course, this is just the first piece of it!

But, it’s the beginning of what led me to find the setup in Pepsi that I discussed with Kelly Evans last week on my return to CNBC’s The Exchange and distributed to my Mastery subscribers.

Pepsi Earnings: A Follow-Up

Last week, I had my eye on Pepsi. I noted at the time that this company crushed it for earnings during the previous quarter. While Pepsi typically only moves 0-2% on earnings, last quarter, it gapped up more than 3.5% post-earnings and ran to a new, all-time high despite the bear market. They invested in Tesla semis, which isn’t correlated to the nice earnings move, but I just think it’s a cool tidbit to note. I also like it because they are a relatively stable consumer staples pick with a decent trend and dividend.

Last Wednesday, Kelly and I discussed the trade and buy levels in Pepsi between the $160-170 price point, where I have a solid zone of Fibonacci support overlapping with price support.

 

So, how is the Pepsi setup coming along? So far, so good! Pepsi broke out above the critical 200 simple moving average (the purple line on my chart) and is trying to break out above the 50 simple moving average (yellow line). It’s up about $7, and if it can break above $180, it should be right onto my targets between $185-190.

Your Earnings Trades

Which earnings reports are you watching this week and why? Reply below!

As for me, I’ll be joining Kelly Evans on CNBC The Exchange this Wednesday with more! Tune in to catch us there!

P.S. Need quality earnings analysis at your fingertips? Check out my Earnings Hot Zone tool for ThinkorSwim by clicking below!

 

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