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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:

  1. 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
  2. Sell-to-close after 7-10 days, or possibly earlier if a desired price target is reached

Similarly,

  1. 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
  2. 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:

  1. Stocks exhibiting positive post-EA price moves are buy-candidates
  2. 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:

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

Strategy Guideline:

  1. Buy the stock if stock has reacted positively. Short the stock if stock has reacted negatively (see above).
  2. 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.

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:

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

Strategy Guideline:

  1. Options Strategy: Sell Call and Put
  2. Options Strike Price: Current Stock Price – (% Predicated Move x 2)
  3. Expiration Date: It should generally be the closest expiry immediately after the EA.
  4. 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:

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

Strategy Guideline:

  1. Buy a Straddle at or close to the money two to three weeks pre-EA.
  2. 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.
  3. Expiration date should generally be the closest expiry immediately after the EA.
  4. 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

  1. Knowing expected volatility in stocks after Earnings helps to decide trading stocks before Earnings Announcement.
  2. 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.

Merck and Moderna’s Cancer Vaccine Shows Substantial Promise 

Posted on Aug 19, 2026 by Ian Cooper

Merck and Moderna’s Cancer Vaccine Shows Substantial Promise 

An experimental cancer vaccine from Merck (NYSE: MRK) and Moderna (NASDAQ: MRNA) has shown positive results in a large, late-stage clinical trial, bringing the companies closer to potentially offering a new treatment for people with melanoma.

At the moment, about 1.4 million people currently live with melanoma in the U.S. It’s also estimated that about 234,860 new U.S. cases could be diagnosed this year. We should also note that melanoma is one of the most serious types of skin cancer. It makes up only about 1% of skin cancer cases, but it causes most skin cancer deaths.

The Vaccine is Designed Specifically for Each Patient



It uses mRNA technology to teach the immune system to recognize and attack cancer cells. The treatment is being tested alongside Merck’s Keytruda, a widely used cancer immunotherapy. The Phase 3 trial included more than 1,100 people with high-risk or advanced melanoma. All of the patients had surgery to remove all detectable cancer, but they still faced a high risk of the disease coming back.

Researchers found that patients who received the personalized cancer vaccine along with Keytruda went longer without their melanoma returning than patients who received Keytruda alone. The combination also reduced the risk of the cancer spreading to other parts of the body.

“It’s a big moment for medicine, a big moment for patients,” Moderna CEO Stephane Bancel said in an interview with CNBC.

The Trial Is Not Finished Yet

Researchers will continue to study whether the treatment helps patients live longer overall. Merck and Moderna also plan to present the full results at an upcoming medical meeting.

In addition, the companies have not yet announced when they will ask U.S. regulators to approve the treatment. Dr. Dean Li, president of Merck Research Laboratories, said the companies expect to begin discussions with regulators about the treatment and its safety in the next few months.

Dr. Jane Healy, Merck’s head of oncology early development, said the new treatment could provide patients with another option. She described the results as “very exciting” and said the treatment produced a meaningful improvement compared with Keytruda alone.

The treatment was also generally well tolerated. Healy said the side effects were similar to those seen with other vaccines.

How Does the Personalized Vaccine Work?

One of the most interesting parts of the treatment is that the vaccine is made for each individual patient. Cancer cells can have different genetic mutations from one patient to another. Even two people with the same type of cancer may have tumors with very different characteristics. Merck and Moderna use information from a patient’s tumor to identify specific mutations that could be targeted. They then create a personalized mRNA vaccine designed to help the patient’s immune system recognize those cancer cells.

The goal is to train the immune system to identify and destroy cancer cells that contain those specific markers. The vaccine is then given with Keytruda, which helps the immune system fight cancer by blocking a mechanism that cancer cells can use to hide from the body’s defenses. Together, the two treatments are designed to give the immune system a more powerful and targeted response. “We think [the results are] very meaningful for patients with this disease,” Healy said. She also suggested that the results could point to the potential of personalized cancer vaccines for other types of cancer.

What Comes Next?

The positive melanoma results are especially important for Moderna. The company is looking for new sources of growth beyond its COVID-19 vaccine business, and its cancer vaccine program has become an important part of that effort.

Merck and Moderna are already studying the personalized vaccine in trials involving other cancers, including non-small cell lung cancer, bladder cancer and kidney cancer. The companies still have more work to do before the treatment could become widely available. Researchers need to finish the trial, study whether the treatment helps patients live longer and work with regulators on a possible approval.

Still, the early results are an important step. If future studies continue to show benefits, personalized mRNA cancer vaccines could become a new way of treating cancer — with treatments designed around the unique characteristics of each patient’s tumor rather than using the same approach for everyone.

cancer vaccine-StockEarnings

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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