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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.

Privacy Policy

The following Privacy Policy governs the online information collection practices of StockEarnings, Inc (“Company,” “we” or “us”). Specifically, it outlines the types of information that we gather about you while you are using the www.StockEarnings.com (the “Site”), and the ways in which we use this information. This Privacy Policy applies primarily to information which we collect online.

We have created this Privacy Policy to demonstrate our firm commitment to privacy and security. This Privacy Policy describes how our Company collects information from all end users of our Internet services (the “Services”), including those who access some of our Services but do not have accounts (“Visitors”) and those who may purchase Products and/or pay a service fee to subscribe to the Service (“Members”).

Please read this Privacy Policy carefully. By visiting and using the Site, you agree that your use of our Site, and any dispute over privacy, is governed by this Privacy Policy. In an effort to comply with changes in technology, and the adoption of new regulations and laws, we may need to change our Policy at some point in the future, in which case we’ll post the changes to this Privacy Policy on this website and update the Effective Date of the policy to reflect the date of the changes. By continuing to use the Site after we post any such changes, you accept the Privacy Policy as modified.

Introduction

We may collect and store personal or other information that you voluntarily supply to us online while using the Site (e.g., while on the Site or in responding via email to a feature provided on the Site). The Site only contacts individuals who specifically request that we do so or in the event that they have signed up to receive our messaging, or have purchased one of our products or services. The Site collects personally identifying information from our users during online registration, membership sign-up and online purchasing. We may also collect information about you through our lead generation pages, or when you sign up to receive email messages or text alerts via the Site. Generally, this information includes name and e-mail address for registration or opt-in purposes and name, email address, and credit card information when purchasing our products or services. All of this information is provided to us by you.

We also collect and store information that is generated automatically as you navigate online through the Site. For example, we may collect information about your computer’s connection to the Internet, which allows us, among other things, to improve the delivery of our web pages to you and to measure traffic on the Site. We also may use a standard feature found in browser software called a “cookie” to enhance your experience with the Site, and web beacons, to access cookies, count users who visit the Site, the date and time of visits, the pages viewed, time spent on our site, websites visited before and after our site, IP addresses, or open HTML-formatted email messages.

We use the information we collect from you while you are using the Site in a variety of ways, including using the information to customize features; advertising that appear on the Site; and, making other offers available to you via email, direct mail or otherwise.

In addition to our Privacy Policy and Terms of Service, we may provide you wish information about how we use, store, share and protect your data in welcome emails and sign-up pages. The information contained in this Privacy Policy and our current Terms of Service provide the most up-to-date information about how we use, store, share and protect your data. Your continued use of our Site after an update is made to any of these policies, confirms your consent and agreement to their terms.

Please keep in mind that whenever you voluntarily make your personal information available for viewing by third parties online – for example on message boards, web logs, through email, or in chat areas – that information can be seen, collected and used by others besides us. We cannot be responsible for any unauthorized third-party use of such information.

Some of our third-party advertisers and ad servers that place and present advertising on the Site also may collect information from you via cookies, web beacons or similar technologies. These third-party advertisers and ad servers may use the information they collect to help present their advertisements, to help measure and research the advertisements’ effectiveness, or for other purposes. The use and collection of your information by these third-party advertisers and ad servers is governed by the relevant third-party’s privacy policy and is not covered by our Privacy Policy. Indeed, the privacy policies of these third-party advertisers and ad servers may be different from ours. If you have any concerns about a third party’s use of cookies or web beacons or use of your information, you should visit that party’s website and review its privacy policy.

The Site also includes links to other websites and provides access to products and services offered by third parties, whose privacy policies we do not control. When you access another website or purchase third-party products or services through the Site, use of any information you provide is governed by the privacy policy of the operator of the site you are visiting or the provider of such products or services.

Please also note that as our business grows, we may buy or sell various assets. In the unlikely event that we sell some or all of our assets, or one or more of our websites is acquired by another company, information about our users may be among the transferred assets.

Personal Information Our Company Collects And How It Is Used

Introduction

Members may be asked to provide certain personal information when they sign up for our Products or Services including name, email address, and billing information (such as a credit card number). The personal information collected from Members during the registration process (or at any other time) is used primarily to provide a customized experience while using our Products and Services. Your information will never be disclosed, traded, licensed or sold to any third party. However, we may make limited disclosure of personal information under the specific circumstances described below.

The Types of Information We Collect and Store

Some of the information we may collect about you and store in connection with the provision and fulfillment of our services to you may include:

>    Name

>    Email Address

>    Mailing Address

>    Telephone Number

>    Masked Credit Card Information

>    Traffic source

>    Any notes or testimonials that you provide

How We Use Your Personal Information

The above personal information may be used for the following purposes:

>    To operate, improve, or promote our Service

>    To send paid and unpaid newsletters

>    ​To provide customer service or support

>    ​To process payments

>    ​To contact you

>    ​When you have opted in to receive email messaging

>    ​When you have opted in to receive SMS messaging

>    ​To respond to your email inquiries. Specifically, when Visitors or Members send email inquiries to us, the return email address is used to answer the email inquiry we receive. We do not use the return email address for any other purpose, or share it with third parties.

​To monitor and analyze trends such as:

>    Purchase history

>    Sales reports

>    Behavior on the Site

>    Email clicks and opens

​To market our products and services through:

>    Email marketing

>    SMS Marketing

>    Trade alerts

>    Paid content

>    Promotions

>    Advertising, including retargeting via Google and Facebook

>    Notifications

To market third party products and services through:

>    Email marketing

>    SMS Marketing

>    Trade alerts

>    Paid content

>    Promotions

>    Advertising, including retargeting via Google and Facebook

>    Notifications

>    Perform accounting, administrative and legal tasks

Who Has Access to Your Data Within Our Organization

Within our organization, access to your data is limited to those persons who require access in order to provide you with the Products and Services you purchase from us, to contact you, and to respond to your inquiries, including requests for refund. Employees only have access to data on a “need to know” basis.

Who We Share Your Data With Outside of Our Organization, and Why

Unaffiliated Third Parties.

We will not share or transfer your data to unaffiliated third parties without your consent. We may use service providers in connection with operating and improving the Site, to assist with certain functions, such as payment processing, email transmission, SMS transmission, data hosting, data analytics, managing our ads, fulfilling product sales, and some aspects of our technical and customer support. We will take measures to ensure that these service providers access, process, and store information about you only for the purposes we authorize, subject to confidentiality obligations, including through the execution of GDPR and CCPA-compliant Data Privacy Agreements or Addenda, as applicable.

Authorities

We may access, preserve, and disclose information about you to third parties, including the content of messages, if we believe disclosure is in accordance with, or required by, applicable law, regulation, legal process, or audits. We may also disclose information about you if we believe that your actions are inconsistent with our Terms of Service or related guidelines and policies, or if necessary to protect the rights, property, or safety of, or prevent fraud or abuse of, Company or others.

Why We Store Information We Collect From You

We retain certain information that we collect from you while you are a member on the Site, and in certain cases where you have deleted your account, for the following reasons:

>    So you can use our Site;

>    To ensure that we do not communicate with you if you have asked us not to;

>    To provide you with a refund, if entitled;

>    ​To better understand the traffic to our Site so that we can provide all members with the best possible experience;

>    ​To detect and prevent abuse of our Site, illegal activities and breaches of our Terms of Service; and

>    To comply with applicable legal, tax or accounting requirements

When we have no ongoing legitimate business need to process your information, we will either delete or anonymize it.

Cookies and Tracking Tools

We use cookies to help you make using our website easier, such as:

>    To remember your country and language preferences

>    To deliver information that matches your interests

>    To help us understand our audience and traffic patterns

>    To let you automatically log into programs and parts of our site that require membership

>    To manage and present site info displayed on our website that will be specific to you

We also use Web Beacons to collect non-personal data on how you use our site, such as how long did you visit our page, what web browser you’re using, what’s your operating system, and who’s your Internet service provider. In addition we also use Google Analytics data and the DoubleClick cookie to serve ads based on a user’s prior visits to our website. This data is collected from thousands of site visits and analyzed as a whole. This helps us build a better website to match our visitors’ needs.

We may also place small “tracker gifs” or “beacons” on many of the pages on our website, in online advertising with third parties, and in our emails. We use these beacons, in connection with Cookies, to collect non-personal data on the usage of our site including but not limited to the date and time of the visit, the pages visited, the referring web page, the type of browser (e.g., Internet Explorer, NetScape), the type of operating system (e.g., Windows, Linux, or Mac), and the domain name of the visitor’s Internet service provider (e.g., AOL). This information is collected about thousands of site visits and analyzed as a whole. This information is useful in, for example, tracking the performance of our online advertising such as online banner ads and to determine where to place future advertising on other websites.

Advertiser Disclosures

SMS Messaging

We may use your telephone number for the purpose of sending you SMS messaging for marketing purposes; to share free content with you, such as articles and videos; to announce the launch of new products; and to provide access to your dashboard and/or downloads, if you have opted in to receive such messaging. You may opt out from receiving SMS messaging from us, at any time, by responding STOP to any of our messages or by emailing [email protected]. Messaging will be sent by automated dialing system. We do not share your telephone number with third parties for the purposes of receiving third party marketing messages. But We may send messages to you promoting the goods or services of third parties. For additional information regarding our SMS messaging program, please read our Terms of Service, or by responding HELP to any of our messages , or by emailing [email protected].

Data Security and Data Privacy Regulation

Our company’s commitment to data security

We implement a variety of administrative, managerial, and technical security measures to help protect your personal information. Our Company has various internal control standards which relate specifically to the handling of personal information. These include certain controls to help safeguard the information we collect online. Our employees are trained to understand and comply with these controls and we communicate our Privacy Policy, practices and guidelines to our employees. However, while we strive to protect your personal information, you must also take steps to protect your information. We urge you to take every precaution to protect your personal information while you are on the Internet.

Additionally, while we make every effort to ensure the integrity and security of our network and systems, we cannot guarantee that our security measures will prevent third-party “hackers” from illegally obtaining this information. If we do discover a security breach affecting your data, every effort will be made to provide a notification within 72 hours of our team learning of the occurrence.

To protect our systems from security breaches we:

>    Use stately firewalls on all systems and around networks

>    Only install required software on production systems

>    Follow a practice of “least required privileges” for all staff and contractors

>    Perform regular updates and security patches

>    Follow security best practices for all custom code

>    Adhere to PCI-DSS guidelines

General Data Protection Regulation (GDPR)

The GDPR took effect on May 25, 2018, and is intended to protect the data of European Union (EU) citizens.

As a company that markets its site, content, products and/or services online we do not specifically target our marketing to the EU or conduct business in or to the EU in any meaningful way. If the data that you provide to us in the course of your use of our site, content, products and/or services is governed by GDPR, we will abide by the relevant portions of the Regulation.

If you are a resident of the European Economic Area (EEA), or are accessing this site from within the EEA, you may have the right to request: access to, correction of, deletion of; portability of; and restriction or objection to processing, of your personal data, from us. This includes the “right to be forgotten.”

To make any of these requests, please contact our GDPR contact at [email protected].

California Consumer Privacy Act (CCPA)

If you are a resident of California, you have certain rights with respect to your data. We respond to all requests that we receive from individuals who wish to exercise their data protection rights in accordance with applicable data protection laws. You can contact us by sending an email to or by calling our Toll Free Telephone Number 1-877-6-STOCKS.

Rights that you may have, include:

>    Requesting deletion of your information

>    If you request that your account be deleted, you will lose access to all of our programs in which you are actively registered.

>    Opting out from the sale of your information to third parties.

>    Requesting disclosure of the personal information we have collected about you and the types of third parties with whom it has been shared.

>    Requesting the portability of your information.

>    Opting out from receiving marketing communications that we send you at any time. You can exercise this right by selecting the “unsubscribe” or “opt-out” link in the marketing emails we send you. Additionally, you may update your email preferences by changing the settings in your account.

>    Requesting that we not sell your information, by clicking on the corresponding link on our website.

Every effort will be made to respond to a verified request within a reasonable time, or the time-frame required by law.

Children’s Privacy Statement

This children’s privacy statement explains our practices with respect to the online collection and use of personal information from children under the age of thirteen, and provides important information regarding their rights under federal law with respect to such information.

>    This Site is not directed to children under the age of thirteen and we do NOT knowingly collect personally identifiable information from children under the age of thirteen as part of the Site. We screen users who wish to provide personal information in order to prevent users under the age of thirteen from providing such information. If we become aware that we have inadvertently received personally identifiable information from a user under the age of thirteen as part of the Site, we will delete such information from our records. If we change our practices in the future, we will obtain prior, verifiable parental consent before collecting any personally identifiable information from children under the age of thirteen as part of the Site.

>    Because we do not collect any personally identifiable information from children under the age of thirteen as part of the Site, we also do NOT knowingly distribute such information to third parties.

>    We do NOT knowingly allow children under the age of thirteen to publicly post or otherwise distribute personally identifiable contact information through the Site.

>    Because we do not collect any personally identifiable information from children under the age of thirteen as part of the Site, we do NOT condition the participation of a child under thirteen in the Site’s online activities on providing personally identifiable information.

CAN-SPAM Compliance

>    We strictly abide by our obligations to comply with anti-SPAM laws.

>    All emails that are sent to you by StockEarnings, Inc include an unsubscribe link in them.

>    You can remove yourself at any time from our mailing list by clicking on the unsubscribe link that can be found in every communication that we send you.

>    We will remove you from our mailing list immediately.

>    Not use false or misleading subjects or email addresses.

We maintain a “Do Not Mail” List. This is a list of subscribers who have decided that they never wish to receive another message from our firm. These email addresses are collected and maintained in a separate file in our database. These individuals will not receive future emails from us, including free email newsletters, advertisements directly from us, or advertisements from third party advertisers sent on our behalf.

You can also remove yourself from our list by visiting our Unsubscribe link located in each of our email communications to you.

Revisions to this policy

Our Company reserves the right to revise, amend, or modify this policy, our Terms of Service, and our other policies and agreements at any time and in any manner, by updating this posting.

Where to direct questions about our privacy policy

If you have any questions about this Privacy Policy or the practices described herein, you may contact us through the contact information provided on this website.

[email protected]

Contact Customer Care

Should you have any questions regarding our Email Policy or other privacy related issues, please contact us so that we can address your concerns.

StockEarnings, Inc
33 SE 4th St, Suite 100,
Boca Raton, FL 33432 USA

Phone: 1-877-6-STOCKS
Email: You may send us an email at [email protected]

Updated September 2020

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