What is the best indicator of future performance??? Past performance? Well if it was that easy , this site would be called OptionBillionaires. But what we can say, is that a stocks history can be used as a tool to help gauge future results. Take ICE (Intercontinental Exchange) for example. ICE has reported earnings that have beaten EPS estimates for the last 7 Quarters, revenues have also been growing, yet the stock has traded in a range from $102 to $135. We think this earnings cycle will break that trend.
Like we wrote about on CME (CME Group), buying options in a stock thats 'cold', can yield amazing returns as it gets 'hot'. We think ICE is ready to melt the charts, and break the trading range with it's earnings release tomorrow. This is the difference maker, and the one that set the stock on fire a few years back on the new. Check it out here. Thats the money maker.
I guess time will tell, but if history is any indication, we will be in for a very fun wednesday.
Disclosure: We do own $130 FEB 18th calls and March $135 calls.