How to bet on AXP's earnings?
Recently, I read Key investment trends to watch in October 2024 and "Sarge" indicated that this quarter could be a strong quarter for banks. To potentially profit from betting on $American Express (AXP.US)$ 's earnings report, I looked into recent stock price movements of bank stocks. I found that the stock prices of $JPMorgan (JPM.US)$ , $Goldman Sachs (GS.US)$ , and $Morgan Stanley (MS.US)$ all increased after their earnings reports were released. If the same happens with $American Express (AXP.US)$ , there might be an opportunity to make some gains through short-term investing.
Since the earnings release day coincides with the expiration of weekly options, the stock price might experience significant volatility. Even bullish options might not see substantial movement. If the earnings exceed expectations, the value of put options could quickly diminish.
To capitalize on this, I plan to sell put options expiring this week with a strike price of 280. For potential stock price growth following the earnings release, I intend to buy call options expiring next week with a strike price of 290. Here is the simulated profit scenario for this strategy.
Obviously, invest in options could be risky, and this strategy is mine choice rather than a suggestion, If you prefer to lower your risk, invest in pure stocks or Banking ETFs, such as $Direxion Daily Regional Banks Bull 3X Shares ETF (DPST.US)$ or $Spdr S&P Bank Etf (KBE.US)$ is also a good strategy.
Hope every mooer could profit from this "strong-quarter for banks".
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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