You either love it… or you hate it.
As this latest earnings season comes to a close, we highlighted a trade in The War Room on semiconductor design company Ambarella (Nasdaq: AMBA) that I’d like to share with you today.
I’ve mentioned this before, but I’ll say it again – I utilize a very specific, precise selection methodology in The War Room that allows you to profit off an earnings report – no matter which way the stock moves.
Sure, this tactic gives up some of the explosive gains you could get by betting on the right move. But at the same time, it helps to eliminate the crippling losses that occur if you happen to guess wrong.
I’d rather safely make 50% to 100% instead of hoping to make 200% at the risk of losing 100%.
Here’s how the Ambarella trade played out…
On August 28, I told War Room members that Ambarella was reporting Thursday after the close.
Thursday after the close: Ambarella (last three moves: 10%, 10% and 15%: all higher).
Using the “trend is your friend” theory, I gave members two choices.
First choice: the more speculative route, playing calls.
Second choice: a safer, two-sided earnings play.
Specifically, I recommended entering the Ambarella September $48 calls and the Ambarella September $46 puts for a combined price of less than $3.60.
And then, the very next day, this happened…
The Ambarella chart absolutely exploded.
On August 30, I reported the great news…
As I’m sure you know, Ambarella came out with quarterly earnings of $0.21 per share, absolutely obliterating the Zacks consensus estimate of $0.03 per share. With a stock price of $56, your September $48 calls have an intrinsic value of $8.
It was a 136% winner overnight!
Those who played it safe hit a home run…
“Home run on Ambarella. Congrats, BB!!” – Russell H.
“Thanks, Bryan. You’ve made my long weekend with that Ambarella play. My weekend surfing adventure will be that much better because of you, sir!” – Rick R.
Those who played the speculative call hit a grand slam…
“444% on Ambarella call. Thanks, Bryan!” – Ramesh G.
Action Plan: This Ambarella trade highlights the value of using The War Room’s unique earnings strategy.
You can speculate for a grand slam…
You can play it safe for a home run.
Either way, those are results worth taking on any trading day. Join me in The War Room today, and you can be ready to start using this method as Q4 earnings season gets started!
The post Ambarella Earnings Report Sets Up 444% Winner appeared first on Investment U.
Source:: Investment You