You then close the position right after the EA by buying the option back much cheaperĭue to the significant drop in IV that occurs after the mystery of the EA disappears. Theīasic trade idea is to sell put or call options right before the EA, collectingĪ credit when options premium is very high due to elevated implied volatility (IV). Low-to-moderate price moves (≤4%) following their Earnings Announcements (EA). The Volatility Crush strategy is used with stocks that typically experience relatively Volatility Crush Strategy - Best for Options Traders Close the position in 7-10 days, or possibly earlier based on price move.Buy the stock if stock has reacted positively.Earnings Date End Date : Current Date + -2 Days.Earnings Date Start Date : Current Date + -1 Day.The screen includes those stocks whose Earnings just came out in last two days. Stocks exhibiting negative post-EA price moves are sell/short-candidates.Stocks exhibiting positive post-EA price moves are buy-candidates.This popular StockEarnings screen below will give you a list of stocks that historicallyĮxhibit significant price momentum following an EA for the next seven days: If you see postĮA-momentum is halted or reversed by a significant opposite move, re-evaluate your The 7-10 day scenario is the maximum trade hold-time. Important: Ride-the-Wave is predicated on significant price momentum triggeredīy an EA. then buy-to-close after 7-10 days, or possibly earlier if a desired price target.near the close of the following day for a post-market-EA.near the close of trading the EA-day for a premarket-EA.short a stock one day post-EA if a stock reacts negatively post-earnings:.Sell-to-close after 7-10 days, or possibly earlier if a desired price target is.Near the close of the following day for a post-market-EA.Near the close of trading the EA-day for a pre-market-EA.Buy a stock one day post-EA if a stock reacts positively post-earnings:.Ride-the-Wave targets multi-day price momentum following a company’s earnings announcement Eastern time to discuss third-quarter results.Ride-the-Wave Strategy – Best for Stock Traders Management hosts a conference call at 10 a.m. It’s been a rough road for investors lately. Coming into Tuesday trading, shares were down about 65% year to date and about 33% over the past three months. Postal Service contract.Īll the turmoil has punished shares. Workhorse also confirmed that it was under investigation by the Securities and Exchange Commission, which had requested information relating to revenue related to purchases of vehicles by “certain of the Company’s customers,” as well as information related to the events and trading in securities leading up to the announcement of a U.S. Read more: Giant Pension Drops Nikola and Workhorse Stock. Workhorse confirmed Monday in a filing that it was under investigation by the Department of Justice, but hadn’t received a subpoena or other request for documents. And the company has been going through a lot, adding a new CEO and setting a new strategic direction after undergoing production delays and other issues. Wall Street was looking for a 33-cent loss.Īn earnings miss isn’t great, but there were a lot of accounting charges in the reported results. The company reported a loss of roughly 50 cents a share. In a regulatory filing on Monday, the company said new leadership “determined that additional testing and modifications to existing vehicles are required to bring the C-1000 vehicles into full compliance with Federal Motor Vehicle Safety Standards.” In September, however, Workhorse recalled 41 vans in its C-1000 line and suspended deliveries, which sent the stock plummeting. Wall Street was looking for sales of about $900,000. The company reported sales of negative $576,602 for the third quarter.
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