Dear Reader, Canopy Growth reported a fiscal first-quarter net loss of 30 Canadian cents per share..
An Earnings Beat Sets Up a Trading Opportunity
[Options Profits Daily]
A Pot Trade with A Potential 94% Gain
Canopy Growth reported a fiscal first-quarter net loss of 30 Canadian cents per share ($US0.22), beating Wall Street’s consensus estimate that called for a net loss of 43 Canadian cents per share, according to FactSet.
The company’s sales of C$110.4 million also beat expectations at C$98.6 million, and were up 22% year-over-year.
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Strong earnings could be a catalyst for gains in each stock, but there are risks to buying stocks after large rallies. Often, investors will assume they missed the earnings trade and move on to the next opportunity. But this can be a mistake, as there are strategies to benefit from news.
[In our latest article,]( we share the details of a strategy that can be used to benefit from strong earnings news. This strategy involves options.
While many individuals believe options are risky, they are also a tool that can be used to reduce risk. Options are among the most flexible investing tools and they are risky when they are not well understood, or when used in the wrong way.
[We review this strategy]( and explain how options can be used to reduce risk. We also use options to pursue a possible double-digit profit. So, even though we are limiting risk we are still pursuing a large gain. And the trade will be only open for a few weeks.
This is an example of how options can be used by individual traders. In this trade, news sets up the [trading opportunity]( that we explain in the article.
Our free educational article includes the details on the strategy and the trade, and you can read it all right now by [clicking here..](
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