Here’s a look at how a few of the stocks we have been following are doing in after-hours trading.
Intuitive Surgical (ISRG, $96.01, down $0.99) reported earnings after the closing bell and pretty much met Wall Street’s numbers although revenue was lighter than anticipated. The company reported a profit of $51 million, or $1.27 a share and Wall Street was looking for $1.27. This was up from a profit of $49 million, or $1.24 per share, versus last year’s quarter. Revenue was up 22% to $231.5 million but the Street was looking for revenue of $231.9 million.
The February 90 puts (AXQNR, $5.10 up $0.40) are still up from our $4.50 entry price and traded at $6.70. I guess the revenue miss was a big deal because the stock is down another $5 to $91 in after-hours as I speak.
The stock is below the levels it traded at earlier in the day and if things hold up on Friday, the February 90 put options should be back up to $7. The wild card is if ISRG will keep sinking as the trading day goes on. Remember, the stock averages a one-day change of 15% following its earnings announcement which puts it at $82 or $110 on Friday. I’m not sure if we get as low as $82, but anything in the $80’s would mean more profits for the put options.
Google (GOOG, $306.50, up $3.42) is getting a little nudge as it is up another $6 in extended trading. The company beats estimates but took over $1 billion in charges related to the plummeting value of some “strategic investments.” They earned $5.10 while Wall Street was expecting $4.95 a share.
Friday should be interesting…
Rick Rouse
Rick@OptionsMentoring.com
