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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.

Viking Therapeutics’ Weight-Loss Drug Shows Substantial Promise 

Posted on Sep 23, 2026 by Ian Cooper

Viking Therapeutics’ Weight-Loss Drug Shows Substantial Promise 

With weekly weight loss injections, even an effective drug can become difficult to fit into everyday life. It’s one reason investors are paying close attention to new results from Viking Therapeutics (NASDAQ: VKTX), which may have just changed the frequency.

On September 22, Viking reported that people taking its experimental obesity drug, VK2735, retained much of their earlier weight loss after switching from weekly injections to less frequent maintenance doses. If that’s the case, VKTX could have quite the opportunity. 

What Viking’s Study Found



The study began with 21 weeks of weekly injections. During that period, participants receiving VK2735 lost an average of roughly 16% to 19% of their starting body weight, depending on the dose. The placebo group saw essentially no weight loss. After those 21 weeks, participants taking the drug moved into a 12-week maintenance phase. Some received an injection every other week, some received one every four weeks, and others were switched to placebo.

The difference: The every-other-week groups retained an average of 90% of the weight they had lost during the initial treatment period. The monthly groups retained an average of 85%. Participants switched to placebo retained 61%. 

In plain English, imagine someone lost 40 pounds during the first phase. Retaining 85% of that loss would mean they remained about 34 pounds below their starting weight at the end of the maintenance period. It does not mean they lost another 85% of their body weight.

Why Fewer Injections Could Matter

A published study of U.S. adults taking GLP-1 drugs found that discontinuation was common over the first two years. People stop treatment for many reasons, so a simpler schedule will not solve every obstacle. Still, having fewer injections could make ongoing treatment more manageable for some patients. 

That is the opportunity Viking is exploring. A patient might begin with weekly doses to lose weight, then move to a schedule that requires fewer injections to help maintain the result.

If further studies support that approach, doctors and patients could have more flexibility when planning long-term care. For now, the key phrase is further studies. Viking’s maintenance results cover 12 weeks, or about three months. They cannot yet show how well monthly dosing would work over a year or longer.

Another Result Caught Investors’ Attention

Viking also followed a small exploratory group that continued taking VK2735 weekly. By week 33, those participants had lost an average of 21.7% of their starting body weight, with no weight-loss plateau observed during that period. 

Viking also reported that gastrointestinal side effects during the maintenance phase occurred at rates comparable to placebo. That is useful to know because nausea, vomiting, diarrhea and constipation are familiar concerns with drugs in this category. Larger and longer studies will give a clearer picture of tolerability.

VKTX Stock Technical Analysis: Can Viking’s Breakout Hold?

VKTX stock surged sharply after the latest VK2735 results, pushing the stock well above its 50-day moving average. VKTX closed at $39.02 on September 23, compared with a 50-day SMA of $33.85, after reaching an intraday high of $42.92. That high is an important near-term resistance level, particularly because VKTX pulled back from it before the close. The stock also posted unusually heavy volume of about 4.29 million shares, suggesting substantial investor interest behind the move.

Momentum remains positive, with the 14-day RSI at 64.88. That is approaching the 70 level traditionally associated with overbought conditions but has not reached it. If VKTX can break above $42.92, the recent rally could have room to extend. On the downside, the $37.50 area and the 50-day average near $33.85 offer potential levels to watch if the stock gives back some of its gains.

viking - StockEarnings

What This Means for Viking Stock

VK2735 acts on two hormone receptors, GLP-1 and GIP, the same targets addressed by tirzepatide from Eli Lilly (NYSE: LLY). Viking’s results suggest it may have a compelling drug candidate, especially if flexible maintenance dosing continues to perform well.

But an encouraging study does not settle the competitive race. 

VK2735 remains experimental. Viking still needs to show that its results hold up in larger trials, demonstrate longer-term safety and effectiveness, and clear the steps required before the drug could reach patients. The company also plans to study oral maintenance dosing, which could add another option if successful. 

For investors, the appeal is easy to understand. Strong weight loss gets a drug noticed. Helping people keep that weight off with a schedule they can live with could make it considerably more valuable.

Viking has delivered promising early evidence on both fronts. The next test is whether the monthly and every-other-week results last beyond three months. With weekly weight loss injections, even an effective drug can become difficult to fit into everyday life. It’s one reason investors are paying close attention to new results from Viking Therapeutics, which may have just changed the frequency.

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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