Is ER estimate too low, easy to beat? 20May 250 calls, 77 cents
I like this chart setup for calls and going out to May gives me less IV risk after earnings. At 77 cents, one contract uses a tiny bit of capital. I will state the caution first - if 180 does not hold then there are support lines below as well as the 175-160 drop zone (white bar).
Weekly closing price has already created bullish divergence with RSI. Stochastic %D has just moved over 20, and ideally it should continue rounding up.
What I found most interesting is this quarters low ER estimate, as compared to past quarters. It makes me wonder since the stock has sold off so much already and most analysts have a substantially higher price target, if FB will readily beat and see a rush of buyers. This is just an idea that could be wrong, so use caution if using capital for this trade.
See the earnings on TipRanks: www.tipranks.com/sto...fb/earnings-calendar
Weekly closing price has already created bullish divergence with RSI. Stochastic %D has just moved over 20, and ideally it should continue rounding up.
What I found most interesting is this quarters low ER estimate, as compared to past quarters. It makes me wonder since the stock has sold off so much already and most analysts have a substantially higher price target, if FB will readily beat and see a rush of buyers. This is just an idea that could be wrong, so use caution if using capital for this trade.
See the earnings on TipRanks: www.tipranks.com/sto...fb/earnings-calendar
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A general note - I have three long call positions for earnings, based on weekly technical setups that give me great reward to risk. I posted all three charts today - FB, PYPL, SPOT
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after hours update: The CNN fear/greed index fell to 27. FB has fallen into the drop zone, by no fault of its own. 20May expiry gives me enough time to hold for a move higher. I have no discomfort because I have used very little capital.