when is a good time to sell a stock on or around their quarterly results?
I am currently invested in visa. i bought it at around $60.00 a share and within a month it has jumped to around $74 a share. this upcoming monday at 5:00 PM Eastern, they are going to share their 2nd quarter results. Up until then, this last week people have been buying stock making it rise. When is the best time to sell to maximize profits?
Answers
2183 points
ChaosNantuko answered one year ago …
safest thing to do would be to sell now and lock in profits. That being said, if they beat estimates, then the stock price will increase significantly and you won't have made as much money.
Second safest thing to do is to buy a protective put. That locks in the profits you've made so far, but still allows you to make more money. The downside is that you won't be quite as profitable if it goes up as if you had just held on normally. If you bought the ATM put option, at the time of writing its 4.10 per share. Right now, you have $14 profit per share. Buying that put would give you a guaranteed $10 profit per share, and the ability to make more money if it continues to go up.
Of course, if you think earnings will be good, then you could just hold the stock through earnings and see what happens. Theres the potential to lose more of your profits so far if they don't do as well as expected though.
Personally, i would buy the put option.
