We just hit one of our biggest overnight winners in The War Room…
And today, I’ll break down exactly how we made this trade – step-by-step.
That way, the next time an opportunity like this presents itself, you can follow alongside me, and perhaps you’ll be next in line to hit a massive winner overnight.
Here’s what happened…
On Thursday, July 30, United Parcel Service (NYSE: UPS) was scheduled to report earnings.
Considering what we recently saw with FedEx, I had a feeling that the UPS report was going to trigger a big move – up or down.
Which way would it go?
Honestly, I didn’t care.
As long as the move was big enough, I knew how to profit.
You see, I recommended an overnight earnings strangle on UPS.
A strangle is an options strategy where you buy both a call and a put with different strike prices but the same expiration date and underlying asset.
Specifically, UPS stock was trading at $124 per share.
So on July 29, I recommended the following trade…
The total cost to enter this trade was $5.90 (which amounts to $590 per call and put combo).
When you have a pending earnings announcement, I find that a strangle is a great strategy if you think the stock is ready for a big move but you’re not willing to flip a coin and guess the direction.
So what happened?
In a truly eye-popping report, UPS reported earnings of $2.13 per share, which blew away the expectation of $1.06.
Revenues of $20.46 billion also surpassed even the highest expectations of $17.31 billion.
Bloomberg called it a “delivery bonanza.”
JPMorgan analyst Brian Ossenbeck said UPS managed to “crush elevated expectations on surge in volume.”
On the news, UPS blasted higher – and the value of our calls mooned.
At a stock price of $141, our UPS $125 calls had an intrinsic value of $16.
That’s 171% above the $5.90 that members paid to enter the entire call and put combo!
Just look at this amazing chart…
As you would guess, War Room members cleaned house.
Here’s a small sample of what they said…
“What a stroke of luck for me. I bought the UPS August $125 Calls late yesterday for $3. I just sold them for $19.50! The biggest win of my trading life. Thank you War Room for a $16,500 win!” – Don W.
William B. made more than 900%…
“UPS: +937%.” – William B.
Michael V. “straight killed it” and made more than $7,500…
“Straight killed it on UPS calls – woke up to $7,563. Biggest green day so far.” – Michael V.
Mike L. chimed in with $6,000…
“Picked up $6K net. Great call on this one, Bryan!” – Mike L.
Sterno made $12,000…
“Sold. Up $12K.” – Sterno
Lisa E. made $21,000…
“21K profit!” – Lisa E.
Michael K. started his morning with a big cash injection…
“Not bad BB! In at $3.40, out at $12.50. 268% return for a $10K profit within 3 minutes of trading day.” – Michael K.
Christopher H. made 400%…
“In the $118 call at $4.15; out at $18!!! 400+%!!!” – Christopher H.
And here’s one more…
“UPS calls in at $3.20 out at $14.20. Thank you, Bryan! …read more
Source:: Investment You