This Retailer Is Ready to Crush Tonight’s Earnings Report

This Week’s Earnings Watch

Earnings are winding down, but one of these companies’ reports has potential to blow the stock out of the water – and you could profit as soon as tomorrow morning.

Nordstrom Inc. (NYSE:JWN) reports after the closing bell today, and I think it has potential to blow this thing all the way to $40.

Look – Macy’s crushed it on earnings. And I think JWN is going to do the exact same thing, especially after the rough year it’s had:

JWN YTD
Tonight’s earnings report is the push this luxury retailer needs to finally break higher. And when that happens, I see our long-held call position turning to a profit.

I’ve got a close eye on this report – stay tuned for any necessary portfolio action.

Free Trade Coming Thursday at 12:30

Here at Profit Takeover, I give you a new official trade recommendation every week. It’s how we’ve made asymmetric profits like 110% on AAL, 107% on UVXY, and 132% on AAPL.

And during this week’s live Profit Takeover trading session, I’m handing out another.

It’s all happening on Thursday, August 26 at 12:30 PM ET. And you can click here to add this event to your calendar right now, making sure you won’t miss a moment of the action.

Mark’s Watchlist

1. Zynga Inc. (Nasdaq:ZNGA)

I told you about ZNGA entering my radar yesterday, and over the course of the day the stock popped 2.7%. I’m still bullish on this name, looking at the October $9 calls today to play further upside movement.

2. CSX Corp. (Nasdaq:CSX)

This rail transportation company has been stuck in a tight range, but I think it’s ready to break out. And when it does, it could make a run at $35. To play that run, I’m looking at the October $35 calls for about $0.50.

3. Transocean LTD (NYSE:RIG)

RIG has been a favorite oil and energy stock of mine for a while now, despite the fact it’s been stock in a downtrend over the past month. And I still think this stock has long-term upside potential – but while we wait for that to happen, why not collect some premium?

I’m looking to sell-to-open the RIG January 2022 $3 put for about $0.52. Collect the premium if it stays above $3 – and if it drops further, then take delivery of the shares so you can profit once this name does break out.

4. KE Holdings Inc. (NYSE:BEKE)

I found some under-the-radar activity in this China stock today. And it’s some big activity:

Someone sold about 122,000 contracts in the September $10 puts, looking to either collect yield or take delivery in bulk if the stock drops below that $10 mark. We’ll put it in the quasi-bullish camp, and it might be interesting to look at some calls. Specifically, the September $20 calls for about $0.70.

5. Apple Inc. (Nasdaq:AAPL)

Option volume has been off the charts on AAPL over the past two weeks. And the stock just broke $150 for the first time. From here, look out – I think we could see AAPL completely explode over the next few days to weeks.

VIX Traffic Light

Last week, I told you why the market can’t sell off.

And eight days later, that sentiment remains true.

Look, the market is over-hedged. People are buying puts on the S&P and individual stocks as protection – protection for trades that they’re already long on.
As a result, the VIX is overpriced. These put buyers aren’t scared of a sell-off, because if one happens, they’re protected. They’re hedged. And then, the buy-the-dip crowd will swoop in and boost the market higher yet again.

It’s a volatility feedback loop, and it’s keeping the S&P afloat. I think we’ll see 4,500 this week on the S&P while the VIX drops to 15.

So, no question about it – today’s traffic light is red.

That was a ton of trade ideas for a single issue. And on Thursday, I’m dropping even more live. Click here to add this week’s live trading session to your calendar now.

See you soon…

Mark Sebastian

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