E*Trade Financial Corp: ETFC Stock Stepping Into the Spotlight

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Although I don’t take too many earnings trades, one company I am looking at for a possible trade this week is E*Trade Financial Corp (ETFC).

E*Trade Financial Corp: ETFC Stock Takes Center StageThe company is scheduled to announce earnings after Thursday’s closing bell.

As far as ETFC options, the Aug $25 calls (ETFC160819C00025000, $1.16) and the Aug $25 puts (ETFC160819P00025000, 75 cents, down $0.45) are both “at the money” with shares hovering near $25.

Analysts are expecting the company to earn 38 cents a share on revenue north of $471 million. The high estimate is at 40 cents a share on revenue of $485 million. The low estimate has E*Trade earning 34 cents a share on revenue of $452 million.

The two aforementioned options have a combined premium of about $2. To break even on this potential “straddle” trade, shares would need to be above $27 or below $23, technically, by Aug. 19.

etfc_chart_072116

As long as the premiums for both options together are under $2, I might be inclined to take action.

I’m more bullish than bearish on ETFC, and the chart above also showing that a bullish run to $26 or higher could be in the cards on a beat-and-raise quarter. Right now, however, I am still on the sidelines ahead of the company’s earnings release.

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Article printed from InvestorPlace Media, https://investorplace.com/2016/07/etrade-etfc-earnings-on-deck/.

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