A Missed Opportunity

There is nothing harder than analyzing a trade but not pulling the trigger, and waking up the next morning realizing that the trigger should’ve been pulled. Yesterday morning I analyzed a possible call on Nike ($NKE) for about 15 minutes, as after close it was set to announce earnings. Throughout I have said to avoid playing earnings, but through more extensive work I feel like I can say I have improved my reading of company performance and the estimation of analysts, along with other factors. I theorized that since last quarter performance for Nike was abysmal, this quarter would surely have an increase in revenue for the company as they have now had the time to figure out how to navigate the pandemic. However, something compelled me to not do it, and this morning I missed out on a chance to 4x my investment. These are the types of plays that excite me the most, because it comes from proper analyzing and it wasn’t an entirely risky play. Moral of the story: trust your gut.

-Darnel Shillingford

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