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.

Shopify’s Strong Growth Makes Its AI Sell-Off Look Overdone

Posted on Sep 11, 2026 by Ian Cooper

Shopify (NASDAQ: SHOP) could be ready for a comeback after getting caught up in this year’s artificial intelligence-driven sell-off, according to Bernstein. The firm recently initiated coverage of the e-commerce software company with an Outperform rating and a $160 price target.

Shares have had a rough 2026, falling about 21% as investors pulled back from software stocks during the so-called “SaaSpocalypse.” The sell-off was fueled by concerns that rapidly advancing AI tools could eventually take market share from traditional software companies. Bernstein analyst Mark Shmulik thinks those fears may be overdone.

Bernstein Sees Shopify as an AI Winner

Shmulik describes Shopify as sitting at the intersection of three major technology markets: e-commerce, software and payments. In his view, AI could ultimately expand the company’s opportunity rather than threaten its business. AI is making it easier for entrepreneurs to launch companies, and those new businesses will still need tools to sell products, accept payments and manage their operations. That puts Shopify in a potentially favorable position.

Shmulik said Shopify is a company he would “circle” as one that could eventually be reclassified as an AI winner, rather than an AI victim. Recent results provide some support for that.

Strong Results Give Investors More Confidence

Shopify’s Q2 2026 earnings report, which it delivered on August 5, showed that the business continues to grow at a rapid pace.

Second-quarter revenue jumped 33.6% year over year to $3.58 billion, beating Wall Street expectations by about $140 million. The company also provided third-quarter revenue guidance above consensus estimates.

Gross merchandise volume, or GMV, climbed 32% to $115.6 billion, showing that merchants continued to move significant amounts of business through Shopify’s platform.

Other financial metrics were strong as well:

Monthly recurring revenue increased to $221 million, up from $185 million
Free cash flow reached $654 million, representing an 18% margin.
Operating income rose to $488 million, compared with $291 million a year earlier.
Net income increased to $1.50 billion, up from $906 million.

Shopify President Harley Finkelstein also pointed to AI as an opportunity for the company, saying that the technology is expanding what merchants can do through the platform.

Rosenblatt Is Bullish, Too

Bernstein isn’t the only Wall Street firm taking a bullish position.

Rosenblatt also recently initiated coverage of SHOP with a Buy rating and a $175 price target.

Analyst Scott Devitt called Shopify a dominant e-commerce software platform serving everyone from smaller merchants to major enterprise brands.

Rosenblatt also sees two areas of the company’s business as particularly underappreciated: B2B commerce and international expansion. Both could provide Shopify with additional room to grow as the company moves beyond its traditional base of online merchants.

The firm also pointed to Shopify’s free cash flow generation and operating leverage as positives. As revenue continues to grow, the company has been able to convert more of that growth into cash flow.

AI Could Actually Strengthen Shopify’s Position

One of the more interesting parts of the SHOP bull case is the company’s push into agentic commerce, a future in which AI assistants help consumers discover products and complete purchases. Rosenblatt argues that even if AI changes how shoppers find products, those transactions will still need infrastructure to handle catalogs, payments and checkout.

Shopify is positioning itself to be part of that infrastructure. The company co-developed the Universal Commerce Protocol with Google, while its Shop Pay system provides a checkout layer designed to work within emerging AI-powered shopping experiences.

So, What’s Next for Shopify?

Shopify expects Q3 revenue to increase at a low-thirties percentage rate year over year. Gross profit dollars are expected to grow at a mid-twenties percentage rate. That means the company is still forecasting growth at a pace that would be impressive for a business of Shopify’s size. The bigger question for investors is whether the market will continue to view SHOP as a software company threatened by AI or as a beneficiary of the AI story.

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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