Delta Air Lines Earnings Report Lines Up Profitable Trade
Right now, we find ourselves in the “quiet period” before the next round of corporate earnings announcements.
However, there is one company reporting before the open this Thursday that just might lead to a winning trading opportunity.
Today’s Trade of the Day outlines this opportunity – before these earnings are released.
Here’s the situation…
Thursday before the open, Delta Air Lines (NYSE: DAL) is scheduled to report earnings. Going into the report, the expectation is earnings per share of $2.30 on revenues of $12.35 billion.
Over its last three earnings reports, Delta has reacted positively each time – gaining 3.5%, 3.3% and 4.5%, respectively.
As a result, Delta has been a strong performer. As you can see below, the carrier’s stock has gone from around $47 in February to its current level just below $60.
Will this upside trend continue?
Or will Delta finally miss expectations and pull back?
Luckily, with the proper trade setup, you don’t have to flip a coin to profit.
Action Plan: On Wednesday afternoon, there’s a good chance I’ll issue a trade in The War Room that will allow you to profit either way – whether Delta moves up or down in reaction to earnings on Thursday.
Based on today’s numbers, if you entered this position today, you would risk $1.60 with this unique strategy. If Delta Air Lines moves 5% higher or lower, you can make around 36% overnight. A bigger reaction could return even more. For example, a 10% reaction (while rare) could make you more than 100% overnight. And remember, the beauty of this trade is that the direction doesn’t matter. As long as it moves enough – higher OR lower – you stand to profit. Join The War Room, and if we make this trade, you’ll know exactly how to get positioned!