Ride-the-Wave Strategy – Best for Stock Traders

Ride-the-Wave targets multi-day price momentum following a company’s earnings announcement (EA). With this strategy:

Buy a stock one day post-EA if a stock reacts positively post-earnings:
1. Near the close of trading the EA-day for a pre-market-EA
2. Near the close of the following day for a post-market-EA
Sell-to-close after 7-10 days, or possibly earlier if a desired price target is reached

Similarly,

short a stock one day post-EA if a stock reacts negatively post-earnings:
1. near the close of trading the EA-day for a premarket-EA
2. near the close of the following day for a post-market-EA
then buy-to-close after 7-10 days, or possibly earlier if a desired price target is reached

Important: Ride-the-Wave is predicated on significant price momentum triggered by an EA. The 7-10 day scenario is the maximum trade hold-time. If you see post EA-momentum is halted or reversed by a significant opposite move, re-evaluate your presence in the trade.

This popular StockEarnings screen below will give you a list of stocks that historically exhibit significant price momentum following an EA for the next seven days:

Stocks exhibiting positive post-EA price moves are buy-candidates
Stocks exhibiting negative post-EA price moves are sell/short-candidates

The screen includes those stocks whose Earnings just came out in last two days.

Screen criteria:

Earnings Date Start Date : Current Date + -1 Day
Earnings Date End Date : Current Date + -2 Days
Predicted Move (Next Day) Max : 7%
Predicted Move (On 7th Day) Min : 7%

Strategy Guideline:

Buy the stock if stock has reacted positively. Short the stock if stock has reacted negatively (see above).
Close the position in 7-10 days, or possibly earlier based on price move.

Volatility Crush Strategy - Best for Options Traders

The Volatility Crush strategy is used with stocks that typically experience relatively low-to-moderate price moves (≤4%) following their Earnings Announcements (EA). The basic trade idea is to sell put or call options right before the EA, collecting a credit when options premium is very high due to elevated implied volatility (IV). You then close the position right after the EA by buying the option back much cheaper due to the significant drop in IV that occurs after the mystery of the EA disappears. In assessing this trade, you need to do your homework to ensure you collect sufficient premium to make the trade worthwhile.

This trade is practical due to the low-to-moderate price-move after the EA, which generally won’t significantly affect the options price, unlike an “action” stock, which experience great price moves post-EA. With these symbols, if you’re on the right side of the price move, that’s a great thing. But if you’re on the wrong side of the move, not so great. Consequently, by minimizing the effect of the post-EA price move, you have a much better chance to profit from the reduction in IV without it being ruined by a violent price move.

For this trade, open the position either (1) the night before the EA when the company announces earnings or (2) during the EA day when it announces post-market, generally capturing IV at or close to its peak.

This popular stockearnings screen will give you a list of stocks which do not react more than 4% fpost-EA. It includes only those stocks whose earnings are releasing next day.

Screen criteria:

Earnings Date Start Date : Current Date + 1
Earnings Date End Date : Current Date + 1
Predicted Move (Next Day) Max : 4%
Options Type: Weekly

Strategy Guideline:

Options Strategy: Sell Call and Put
Options Strike Price: Current Stock Price – (% Predicated Move x 2)
Expiration Date: It should generally be the closest expiry immediately after the EA.
Buy Insurance: Buying back Call and Put at Strike price which 10% lower than Sell Strike Price is optional but recommended.

Watch Video for More Detail

Volatility Rush Strategy - Best for Options Traders

The Volatility Rush takes advantage of increasing options premiums into earnings announcements (EA) caused by an anticipated rise in Implied Volatility (IV). With this strategy, Buy a Call and Put at-the-money (a long straddle) 2-3 weeks before the EA when IV is lower. Sell the position either (1) the night before the EA when the company announces earnings pre-market, or (2) during the EA day when it announces post-market, generally capturing IV at or close to its peak.

This popular screen will give you a list of stocks whose Options premiums tend to rise into Earnings. It includes only those stocks whose Earnings are at least two weeks away from today.

Screen criteria:

Earnings Date Start Date : Current Date + 15 Days
Earnings Date End Date : Current Date + 30 Days
Predicted Move (Next Day) Min : 5%
Options Type: Weekly or Monthly if that lines up with the two to three-week lead-time for entering the trade

Strategy Guideline:

Buy a Straddle at or close to the money two to three weeks pre-EA.
Sell the position either the night before the EA when the company announces earnings pre-market, or during the EA day when it announces post-market.
Expiration date should generally be the closest expiry immediately after the EA.
Straddle price should not be more 60% of predicted move.

Predicted Move (Volatility)

Similar to Implied Volatility in Options. Expected volatility % based on our Proprietary Volatility Predication Model. We are expecting that stock price will likely to reach % in either direction by the end of next trading session after Earnings are released and not necessarily the closing volatility %.

Why is it important?

This indicator helps

Knowing expected volatility in stocks after Earnings helps to decide trading stocks before Earnings Announcement.
Taking Advantage of volatility collapse following Earnings Results by using Advance Options strategies such as Spread and Straddles.

Since Last Earnings

Change in share price since last Earnings release.

Why is it Important?

When share has gained more than 10% since it's last Earning release, it tends to over react to minor bad news and give up some gains if not all. So, it contains more downside volatility than upside When share has dropped more than 10% since it's last Earning release, it tends to over react to minor good news and recover some drops if not all. So, it contains more upside volatility than downside.

EPS Surprise (%)

Occurs when a company's reported quarterly or annual profits are above or below analysts' expectations. Here is the formula to derive % EPS Surprice:

Actual EPS - Estimated EPS
------------------------------------- x 100
Estimated EPS

Why is it Important?

Earnings surprises can have a huge impact on a company's stock price. Several studies suggest that positive earnings surprises not only lead to an immediate hike in a stock's price, but also to a gradual increase over time. Hence, it's not surprising that some companies are known for routinely beating earning projections. A negative earnings surprise will usually result in a decline in share price.

Next Day Price Change (%)

Next Regular trading session Closing price following Earnings result.

For After Market Close Earnings, It is a next trading day closing price. For Before Market Open Earnings, It is the same trading day closing price.

Why is it Important?

Next Day price change is a reaction of Earnings result.

Micron Q4 Earnings: 3 Powerful Signals Investors Need to Watch

Posted on Sep 21, 2026 by Ian Cooper

Micron Technology (NASDAQ: MU) is scheduled to report its fiscal fourth-quarter earnings after the market closes on September 30. While revenue and earnings will attract plenty of attention, Wall Street’s biggest question is straightforward: Can Micron keep benefiting from extraordinary demand for the memory chips powering artificial intelligence?

Expectations are already exceptionally high.

Micron’s previous quarterly results showed explosive growth in sales, profits and margins. The company then issued a strong outlook for the fourth quarter. This time around, Wall Street will want results that exceed the company’s guidance and an outlook suggesting the momentum can continue into fiscal 2027.

Micron Earnings Could Deliver Another Record Quarter

Micron guided for fiscal fourth-quarter revenue of about $50 billion, plus or minus $1 billion. At the midpoint, that would represent a considerable increase from the $41.46 billion generated during the third quarter. The company also expects adjusted earnings of about $31 per share, plus or minus $1, along with an adjusted gross margin of about 86%.

Those are big numbers for a company that has historically operated in one of the semiconductor industry’s most cyclical markets. Memory prices can rise rapidly when supply is tight, only to collapse when manufacturers add too much capacity.

This time, however, Micron argues that the AI revolution is creating a more durable period of demand. Investors will want to hear evidence supporting that claim when the company reports.

HBM Growth Could Be the Key Earnings Catalyst

The most important part of Micron’s earnings report may be its update on high-bandwidth memory, better known as HBM.

HBM is critical for advanced AI accelerators because it allows enormous amounts of data to move quickly between memory and processors. As companies such as Microsoft (NASDAQ: MSFT), Amazon (NASDAQ: AMZN), Alphabet (NASDAQ: GOOGL) and Meta Platforms (NASDAQ: META) continue spending billions of dollars on AI infrastructure, demand for specialized memory has surged.

Micron said during its previous report that HBM4 was already in high-volume shipments for a lead customer’s platform. It had also sent qualification samples to multiple other customers. Meanwhile, development of its next-generation HBM4E product was progressing, with volume production expected in calendar 2027.

Pricing and Margins Must Remain Strong

HBM demand is only part of the story. Micron also sells DRAM and NAND memory used in servers, personal computers, smartphones, vehicles and storage systems.

Strong AI demand has tightened the supply of advanced memory products. In addition, manufacturers are dedicating more production capacity to HBM, which can require considerably more manufacturing resources than conventional DRAM. That shift can limit the supply of traditional memory and support higher prices throughout the market.

This favorable pricing environment helped Micron produce a non-GAAP gross margin of 84.9% in its fiscal third quarter. The company expects that figure to reach approximately 86% in the fourth quarter. Investors will want to know whether those margins are sustainable.

The outlook for the new fiscal year could move the stock more than the headline results. Wall Street will want to hear whether cloud companies are maintaining their AI spending plans. Investors will also look for guidance on HBM demand, conventional DRAM pricing, NAND conditions and planned capital expenditures.

Fiscal 2027 Outlook Could Drive MU Stock

Wall Street expects Micron to deliver another strong quarter on September 30. But with revenue, earnings and margins already projected at record levels, the company faces a much higher bar than it did earlier in the AI cycle.

The report will ultimately come down to three questions: Is AI-memory demand still accelerating? Can the company maintain its exceptional margins? And does management expect the momentum to continue into fiscal 2027?

If the answers are convincing, Micron could reinforce its position as one of the biggest beneficiaries of the AI infrastructure boom. If guidance shows that growth is beginning to level off, investors may decide that too much optimism is already reflected in the stock.

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Over the last 26 years, he’s taught thousands of investors how to trade news flow and herd mentality using a unique blend of technical and fundamental analysis. Cooper was among the few analysts to spot the financial crisis of 2008, the top of subprime and Alt-A, the death of Lehman Brothers, Bear Stearns, and New Century Financial, and even the Dow’s collapse to 6,500, as well as its recovery. He even called for gold to rally well above $1.500 when it traded under $600. At the moment, Cooper makes use of technical, fundamental and news analysis, to help individual investors grow their wealth. He’s a firm believer that hard work and thorough research will lead to investment success.

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Ride-the-Wave Strategy – Best for Stock Traders

Volatility Crush Strategy - Best for Options Traders

Volatility Rush Strategy - Best for Options Traders