Microsoft Corporation (MSFT) Earnings Preview

Microsoft Corporation (MSFT) is engaged in developing, licensing and supporting a range of software products and services while designing and selling hardware through its five segments. The stock is currently trading around $46.84 closer to the upper end of its 52 week range of $40.12-$50.04. The stock has been under performing the market rising 0.73% year to date. MSFT is scheduled to report earnings after the bell today, and the stock is down $0.05 or 0.10% on the session ahead of the close.

Over the past 12 quarters MSFT has rallied on earnings day 8 times with an average move of 4.56%. The stock appears bullish on a chart going into the release having traded in the Ichimoku Cloud and broken through the top for the past months since mid-June on the daily bars. Over the past 12 quarters MSFT has rallied from earnings to the nearest options expiration 7 times with an average move of 5.01%. The stock looks as if it could rip to the upside in today’s session following the past months trend. Investors have seen favorable earnings revisions which is usually a foreshadow of favorable earnings estimates. Microsoft Corporation also had news about plans for a restructure. The recent purchase of Nokia’s smartphone arm and cut of 18,000 jobs by the new CEO Sataya Nadella may lead to greater profit margins for the company.

The options market is currently implying a move of around $2.45 or 5.2% in MSFT by this Friday’s close giving us targets of $44.39 and $49.29.

A Look at Yahoo! Inc. (YHOO) Ahead of Earnings

Yahoo! Inc. (YHOO) is a technology company engaged in providing Internet search, communication and digital content with products including Search, Communications, Digital Content, Flickr and Tumblr. The stock is currently trading around $39.56 around the middle of its 52 week range of $33.16-$52.62. The stock has been under performing the market this year falling 21.64% year to date. YHOO is scheduled to report earnings after the close today, and the stock is up $0.01 or 0.04% on the session ahead of the close.

Over the past 12 quarters YHOO has rallied on earnings day 5 times with an average move of 4.83%. The stock appears bearish on a chart going into the release having traded below or in the Ichimoku Cloud for the past few months since March on the daily bars. Over the past 12 quarters YHOO has rallied from earnings to the nearest options expiration 5 times with an average move of 5.28%. The stock looks as if it could drop like a rock in today’s session following the 4 month trend. Investors are expecting to see how the company performs having seen falling revenue recently. The main portion of earnings investors are expected to be focused upon is the spinoff company Alibaba and their growth. Other key parts of earnings is growth at Yahoo’s core.

The options market is currently implying a move of around $1.84 or 4.6% in YHOO by this Friday’s close giving us targets of $37.72 and $41.40.

Harley-Davidson Inc. (HOG) Earnings Preview

Harley-Davidson (HOG) is the parent company for groups of companies doing business as Harley-Davidson Motor Company and Harley-Davidson Financial Services operating in two segments: the Motorcycles & Related Products. The stock is currently trading around $55.04 at the lower end of its 52 week range of $53.04-$70.41. The stock has been under performing the market this year falling 16.51% year to date. HOG is scheduled to report earnings before the opening bell tomorrow, and the stock is up $0.06 or 0.10% today on the session ahead of the close.

Over the past 12 quarters HOG has rallied on earnings day 4 times with an average move of 3.87%. The stock appears bearish on a chart going into the release having traded below or in the Ichimoku Cloud for the past few months since March on the daily bars. Over the past 12 quarters HOG has rallied from earnings to the nearest options expiration 8 times with an average move of 6.00%. The stock looks as if it could rip to the upside in today’s session following the recent change in trend. Investors are expecting to see how the company performs after already releasing to the public a lower shipment order of 88,000 motorcycles as compared to last years 92,000 order. The company anticipates operating income of the Financial Services segment to decline due to higher credit losses and contracting net interest.

The options market is currently implying a move of around $4.00 or 7.2% in HOG by this Friday’s close giving us targets of $51.04 and $59.04.

Level 3 Communications, Inc. (LVLT) Bullish Options Activity Leads to a Lucrative Trade

Level 3 Communications, Inc. (LVLT) is a provider of a range of integrated communication services operating in North America, Europe, Latin America and Asia. LVLT is trading at $54.26 around the upper end of its 52 week range of $37.61-$57.08. Year to date the stock has outperformed the market rising 9.21%. The stock ripped to the upside in today’s session by about 2.30% or $1.22.

Early in the session a trader bought 9,690 of the LVLT Aug 60.0 Calls for $0.42 when the stock was trading at $53.14. This order was recorded about two hours after the open on OptionHacker, and the stock rose about $0.59 to $54.40 after the trade hit the tape. Over 19,200 contracts have been traded today hinting at bullish sentiment. The LVLT July 60.0 Calls have traded as high as $0.95 today making this a highly profitable trade. This stock has been trading below the Ichimoku Cloud on the intraday time frames for the past month, but continually ripping to the upside.

Trade: A trader bought 9,690 of the LVLT Aug 60.0 Calls for $0.42
Risk: $42 per 1 lot
Breakeven: $60.42

If a trader bought a 20 lot of these Calls they would have profited $1060 at the highs on $840 in risk. This is a great example of a hugely profitable UOA trade.

International Business Machines Corp. (IBM) Earnings Preview

International Business Machines Corporation (IBM) is a technology company operating in five business segments: Global Technology Services, Information Technology, Global Business Services, Systems and Technology and Software. The stock is currently trading around $172.67 at the middle of its 52 week range of $149.52-$196.40. The stock has been outperforming the market this year rising 7.69% year to date. IBM is scheduled to report earnings after the closing bell today, and the stock is up on the day by $0.22 or 0.13% ahead of the close.

Over the past 12 quarters IBM has rallied on earnings day 4 times with an average move of 4.66%. The stock appears bullish on a chart going into the release having traded above or in the Ichimoku Cloud for the past few months since late-March on the daily bars. Over the past 12 quarters IBM has rallied from earnings to the nearest options expiration 3 times with an average move of 4.93%. The stock looks as if it could rip to the upside in today’s session following the 4 month trend. Investors are expecting to see how the company performs at earnings largely due to disappointing earnings in previous quarters. The company has reported declining revenues on a year-over-year basis, and intensifying competition in the industry continue to be major headwind.

The options market is currently implying a move of around $6.90 or 4.0% in IBM by this Friday’s close giving us targets of $165.77 and $179.57.

Verizon Communications (VZ) Earnings Preview

Verizon Communications (VZ) is a holding company that, acting through its subsidiaries, provides communications, information and entertainment products and services to consumers, businesses and governmental agencies. The stock is currently trading around $47.80 at the lower end of its 52 week range of $45.09-$53.66. The stock has been performing in line with the market this year rising 2.17% year to date. VZ is scheduled to report earnings before the opening bell tomorrow, and the stock is up on the day by $0.26 or 0.54% ahead of the close.

Over the past 12 quarters VZ has rallied on earnings day 6 times with an average move of 2.17%. The stock appears bearish on a chart going into the release having traded below the Ichimoku Cloud for the past few months since early June on the daily bars. Over the past 12 quarters VZ has rallied from earnings to the nearest options expiration 7 times with an average move of 2.25%. The stock looks as if it could rip to the upside in today’s session following today’s trend. Investors are expecting to see how the company will perform on earnings tomorrow due to consistent market share gain. The company has also seen strong LTE (Long Term Evolution) sales increase and the roll-out of FiOS Internet have been key for growth. Additions of tablet and Wi-Fi devices are increasing number of gadgets per customer, contributing to revenue.

The options market is currently implying a move of around $0.85 or 1.8% in VZ by this Friday’s close giving us targets of $46.95 and $48.65.

Morgan Stanley (MS) Earnings Preview

Morgan Stanley (MS) is a financial holding company providing a variety of products and financial services to a group of clients and customers, including corporations, governments, financial institutions and individuals. The stock is currently trading around $39.91 at the upper end of its 52 week range of $31.12-$40.26. The stock has been performing in line with the market this year rising 2.86% year to date. MS is scheduled to report earnings before the opening bell on Monday, and the stock is unchanged today on the session ahead of the close.

Over the past 12 quarters MS has rallied on earnings day 8 times with an average move of 3.49%. The stock appears bullish on a chart going into the release having traded above or in the Ichimoku Cloud for the past few months since mid-April on the daily bars. Over the past 12 quarters MS has rallied from earnings to the nearest options expiration 9 times with an average move of 3.65%. The stock looks as if it could rip to the upside in today’s session following the 3 month trend. Investors are expecting to see how the company performs after reporting 176 deals worth $569 billion. Despite near zero interest rate environments, investors have seen pickup in consumer and commercial loan demand to aid the company’s net interest income.

The options market is currently implying a move of around $1.25 or 3.1% in MS by this Friday’s close giving us targets of $38.66 and $41.16.

Halliburton Company (HAL) Earnings Preview

Halliburton Company (HAL) is a provider of services and products to the upstream oil and natural gas industry operating under two divisions: the Completion and Production segment and the Drilling and Evaluation segment. The stock is currently trading around $39.92 at the lower end of its 52 week range of $37.21-$74.33. The stock has been performing in line with the market this year rising 1.53% year to date. HAL is scheduled to report earnings before the opening bell on Monday, and the stock is bearish today falling by $0.14 or 0.35% on the session ahead of the close.

Over the past 12 quarters HAL has rallied on earnings day 9 times with an average move of 3.19%. The stock appears bearish on a chart going into the release having traded below the Ichimoku Cloud for the past month since mid-June on the daily bars. Over the past 12 quarters HAL has rallied from earnings to the nearest options expiration 10 times with an average move of 4.51%. The stock looks as if it could reverse today’s trend and rip to the upside in today’s session receiving support at the $39.66 venom line. Investors are expecting to see a continued trend of beating earnings. In the past few quarters the company has performed primarily due to robust contracts and new technologies while expanding its international footprint.

The options market is currently implying a move of around $1.75 or 4.4% in HAL by this Friday’s close giving us targets of $38.17 and $41.58.

Ericsson (ERIC) Earnings Preview

Telefonaktiebolaget LM Ericsson (ERIC) is a provider of communications technology, services, software and infrastructure for mobility, broadband and the cloud in telecom industry and other sectors. The stock is currently trading around $10.59 at the lower end of its 52 week range of $9.92-$13.28. The stock has been under performing the market this year falling 12.81% year to date. ERIC is scheduled to report earnings before the opening bell tomorrow, and the stock is quite bullish today ripping to the upside by $0.20 or 1.92% on the session ahead of the close.

Over the past 12 quarters ERIC has rallied on earnings day 5 times with an average move of 5.88%. The stock appears bearish on a chart going into the release having traded below the Ichimoku Cloud for the past few months since late May on the daily bars. Over the past 12 quarters ERIC has rallied from earnings to the nearest options expiration 7 times with an average move of 6.78%. The stock looks as if it could continue today’s trend and rip to the upside in today’s session receiving a lot of support. Investors are expecting to see slow growth in its North American revenues to be offset by the strengthening USD, but expect strong growth in Asia and Africa and moderate growth in Europe. The company has implemented ongoing cost and efficiency programs to improve profit margins.

The options market is currently implying a move of around $0.68 or 6.4% in ERIC by this Friday’s close giving us targets of $9.91 and $11.27.

General Electric Company (GE) Earnings Preview

General Electric Company (GE) is a diversified infrastructure and financial services company offering products ranging from aircraft engines, power generation, oil and gas production equipment to household appliances. The stock is currently trading around $26.93 at the middle to upper end of its 52 week range of $23.41-$28.68. The stock has been outperforming the market this year rallying a 6.61% year to date. GE is scheduled to report earnings before the opening bell tomorrow, and the stock is bullish today rising by $0.16 or 0.60% on the session ahead of the close.

Over the past 11 quarters GE has rallied on earnings day 5 times with an average move of 3.35%. The stock appears bullish on a chart going into the release having traded above or in the Ichimoku Cloud for the past few months since early April on the daily bars. Over the past 11 quarters GE has rallied from earnings to the nearest options expiration 5 times with an average move of 2.58%. The stock looks as if it could continue today’s trend and rip to the upside in today’s session. Investors are mainly looking to see how the company has been rebuilding the high-margin industrial operations. Both per-share earnings and revenue numbers are expected to be down from a year ago, setting a low bar for the company.

The options market is currently implying a move of around $0.55 or 2% in GE by this Friday’s close giving us a downside target of $28.93 and an upside target of $24.93.