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.

Palo Alto Networks Sees Growth as AI Creates New Cybersecurity Threats

Posted on Sep 03, 2026 by Ian Cooper

Palo Alto Networks (NASDAQ: PANW) had a strong fiscal fourth quarter, beating Wall Street’s expectations for both earnings and revenue. The cybersecurity giant continues to benefit from growing concerns about artificial intelligence (AI) and the new cybersecurity risks that come with it.

The company posted adjusted earnings of $1.02 per share, which was above estimates of 98 cents. The company also reported $3.41 billion in revenue, which was higher than the $3.35 billion analysts expected.

PANW Earnings Benefit From AI Cybersecurity Demand

One of the biggest reasons for Palo Alto Networks’ growth is the increasing use of artificial intelligence. AI can help businesses work faster and take on new tasks, but it can also create new security challenges. Hackers can use advanced AI tools to plan and carry out attacks more quickly. In fact, Palo Alto Networks CEO Nikesh Arora said these AI-related risks are creating a long-term opportunity for the company.

He explained that the effects of AI on cybersecurity will not happen all at once. Instead, he expects the demand for cybersecurity tools to grow over several years.

Agentic AI Could Create New Cybersecurity Threats

One area that has received more attention is called agentic AI. These are AI systems that can do more than simply answer questions. They can plan tasks, make decisions and take actions with less help from people. While this technology can be useful, it could also give hackers new ways to carry out attacks. AI agents may be able to complete multiple steps of an attack without requiring constant human instruction.

Recent security incidents have increased concerns about these risks. The OpenAI-Hugging Face hack, for example, showed how AI-related systems can become targets for cyberattacks. As AI technology becomes more powerful, companies are looking for better tools to protect their systems and information.

Rising AI Security Risks Are Driving Customer Interest

Palo Alto Networks has seen strong interest from its customers. Arora said the company has held more than 2,000 customer briefings since the launch of Anthropic’s Mythos AI model. That is a large increase from the 1,200 briefings the company reported during the previous quarter.

These meetings show that businesses are paying closer attention to the security risks connected to AI. Companies want to understand how new AI technology could affect their networks, data and employees. This growing demand could help Palo Alto Networks continue expanding its cybersecurity business.

Palo Alto Networks Expands AI Security Through Acquisitions

The company is also expanding its AI security business through acquisitions. Palo Alto Networks recently announced that it plans to acquire AI startup Console. The goal is to improve the company’s ability to protect customers from new AI-related threats.

This is part of Palo Alto Networks’ broader acquisition strategy. Over the past year, the company has made several major deals. These include the $25 billion purchase of identity security company CyberArk and the nearly $3.4 billion purchase of Chronosphere.

Arora said Palo Alto Networks can learn from smaller cybersecurity startups that are developing new ideas. He described the startup industry as a place where companies can test different approaches to cybersecurity. If Palo Alto finds a technology it likes, it could choose to acquire the company.

Palo Alto Networks Raises the Bar With Strong 2026 Outlook

Moving forward, Palo Alto Networks gave investors a strong outlook. The company expects to report between $3.30 billion and $3.31 billion in revenue during its first quarter. Analysts had expected $3.22 billion.

For the full fiscal year, Palo Alto expects revenue between $14.10 billion and $14.20 billion. The company also expects adjusted earnings of between $4.16 and $4.19 per share. Both forecasts are higher than analysts’ expectations of $13.79 billion in revenue and $4.11 per share in adjusted earnings.

For Palo Alto Networks, the growth of AI could create a major opportunity. As AI becomes more powerful, companies will need stronger cybersecurity tools to protect their systems. Palo Alto Networks is positioning itself to meet that demand and continue growing in the years ahead.

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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