Earnings continue setting up gains for investors

A Large Cap Company's Earnings Sets Up a Potential Triple Digit Gain
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A Large Cap Company's Earnings Sets Up a Potential Triple Digit Gain

Large cap companies are often considered to be low volatility stocks. They have large market caps and even good news can fail to move the stock more than a few percentage points. This is one reason individual investors may prefer smaller stocks.

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But earnings created an attractive opportunity in one large cap company. One analyst noted gains could come from a new Chairman's focus on operations, in particular, his "decision to eliminate wasteful marketing spend (55 basis-point improvement), and streamline operations of the company's many unique brands."

This stock carries risk, specifically the risk coronavirus presents to a travel company, but there's an unusually profitable opportunity as we explain in our latest article, and shares of this company could provide significant potential gains for aggressive traders willing to use options.

As we explain in detail, we use an options strategy that is focused on risk and the risks of the trade are strictly limited at the time the position is opened. We show what the amount of risk is in dollar terms and we also detail the potential gains of the trade which is 114%.

The potential risks and the possible gains of the trade are detailed and are based on actual recent market data rather than hypothetical prices. We also show how we arrive at the numbers so you could possibly find other trading opportunities with this method.

You can continue reading about this in our latest free educational article that is available right here.

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