ajax loader

Loading...


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.

ACHN MENU
ACHN
CLOSE
Achillion Shareholders Approve Agreement to be Acquired by Alexion
Achillion Shareholders Approve Agreement to be Acquired by Alexion
December 19 2019 07:24 AM

BLUE BELL, Pa., Dec. 19, 2019 (GLOBE NEWSWIRE) -- Achillion Pharmaceuticals, Inc. (Nasdaq: ACHN), a clinical-stage biopharmaceutical company dedicated to transforming the lives of patients and families affected by complement-mediated diseases, today announced that its shareholders have approved the acquisition of Achillion by Alexion Pharmaceuticals, Inc. (Nasdaq: ALXN). Achillion continues to expect the transaction to close in the first half of 2020, subject to expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (the “HSR Act”). Alexion and Achillion have not yet submitted their filings under the HSR Act, and currently anticipate doing so in January 2020.

Achillion Reports Positive Data from Phase 2 Study of Danicopan (ACH-4471) in Combination with Eculizumab in PNH Patients who Have an Inadequate Response to Eculizumab Monotherapy at the 61st American Society of Hematology Meeting
Achillion Reports Positive Data from Phase 2 Study of Danicopan (ACH-4471) in Combination with Eculizumab in PNH Patients who Have an Inadequate Response to Eculizumab Monotherapy at the 61st American Society of Hematology Meeting
December 09 2019 08:00 AM

– 2.4 g/dL mean increase in hemoglobin at 24 weeks – – Reduction in blood transfusions from 34 to 1; and improvements in markers of hemolysis –-  Completed End of Phase 2 Meeting; Phase 3 Trial Initiation in early 2020 -

Why Is Achillion (ACHN) Down 2.8% Since Last Earnings Report?
Why Is Achillion (ACHN) Down 2.8% Since Last Earnings Report?
December 07 2019 09:31 AM

Achillion (ACHN) reported earnings 30 days ago. What's next for the stock?

5 Stocks That Pushed Russell 2000 ETF Higher
5 Stocks That Pushed Russell 2000 ETF Higher
November 27 2019 10:15 AM

Inside the best performing stocks of the Russell 2000 ETF.

Achillion
Achillion's (ACHN) Danicopan Gets EMA's PRIME Tag for PNH
November 20 2019 07:50 AM

Achillion's (ACHN) lead pipeline candidate danicopan receives PRIME status from the EMA as a treatment option for PNH in patients, who are not adequately responding to a C5 inhibitor.

European Medicines Agency Grants PRIME Designation to Danicopan for Treatment of Paroxysmal Nocturnal Hemoglobinuria Patients Who Are Not Adequately Responding to a C5 Inhibitor
European Medicines Agency Grants PRIME Designation to Danicopan for Treatment of Paroxysmal Nocturnal Hemoglobinuria Patients Who Are Not Adequately Responding to a C5 Inhibitor
November 19 2019 05:30 AM

– Phase 3 PNH initiation planned early 2020 – – Phase 3 PNH initiation planned early 2020 –

Achillion Announces Clearance of Investigational New Drug Application for ACH-5228
Achillion Announces Clearance of Investigational New Drug Application for ACH-5228
November 11 2019 05:30 AM

BLUE BELL, Pa., Nov. 11, 2019 (GLOBE NEWSWIRE) -- Achillion Pharmaceuticals, Inc. (Nasdaq: ACHN), a clinical-stage biopharmaceutical company dedicated to transforming the lives of patients and families affected by complement-mediated diseases, today announced that the U.S. Food and Drug Administration (FDA) has reviewed and cleared the Investigational New Drug Application (IND) for ACH-5228, the Company’s second-generation oral factor D inhibitor. The opening IND study in the United States will be a drug-drug interaction study with ACH-5228. The Company expects to begin a Phase 2 proof-of-concept paroxysmal nocturnal hemoglobinuria (PNH) clinical trial of ACH-5228 in the first half of 2020.  

Why Achillion Pharmaceuticals, Tech Data, and First Majestic Silver Jumped Today
Why Achillion Pharmaceuticals, Tech Data, and First Majestic Silver Jumped Today
October 16 2019 01:30 PM

Buyout talk played a big role in several stocks' moves.

Why Achillion Pharmaceuticals Stock Is Skyrocketing Today
Why Achillion Pharmaceuticals Stock Is Skyrocketing Today
October 16 2019 06:59 AM

Alexion Pharmaceuticals will reportedly buy clinical-stage rival Achillion Pharmaceuticals in an all-cash deal.

Are Shareholders Getting Enough in the Achillion Acquisition?
Are Shareholders Getting Enough in the Achillion Acquisition?
October 16 2019 06:45 AM

Achillion Pharmaceuticals Inc. (NASDAQ: ACHN) shares skyrocketed on Wednesday morning after an announcement that the firm would be acquired by Alexion Pharmaceuticals Inc.

Alexion To Acquire Achillion Pharma For $930M
Alexion To Acquire Achillion Pharma For $930M
October 16 2019 04:25 AM

Alexion Pharma (NASDAQ: ALXN) will buy Achillion Pharma (NASDAQ: ACHN) for the initial value of $930 million, or $6.30 per share in cash plus added contingent considerations for total potential value of $8.30 per share.

Achillion Pharmaceuticals
Achillion Pharmaceuticals' stock rockets after Alexion Pharmaceuticals $930 million buyout deal
October 16 2019 04:15 AM

Shares of Achillion Pharmaceuticals Inc. ACHN, +2.82% rocketed 82% in premarket trading Wednesday, after the biopharmaceutical company agreed to be acquired by Alexion Pharmaceuticals Inc.

Achillion Makes Significant Advancement With FDA Designation, Sets Up Big Catalysts In Coming Months
Achillion Makes Significant Advancement With FDA Designation, Sets Up Big Catalysts In Coming Months
October 09 2019 10:02 AM

Achillion Pharmaceuticals receives Breakthrough Therapy Designation for danicopan in combination with a C5 inhibitor for the treatment of patients with paroxysmal nocturnal hemoglobinuria.

Achillion Pharmaceuticals: ACH-5228 De-Risking Gets Noticed
Achillion Pharmaceuticals: ACH-5228 De-Risking Gets Noticed
September 30 2019 07:52 AM

Achillion recently reported Phase 1 results of ACH-5228 which seems to have addressed the limitations of danicopan.

Achillion
Achillion's Danicopan Gets Breakthrough Therapy Tag for PHN
September 26 2019 08:32 AM

Achillion's (ACHN) oral factor D inhibitor, danicopan, receives Breakthrough Therapy designation from the FDA as a treatment option for PNH. Shares up.

Achillion to Present at the 2019 Cantor Fitzgerald Global Healthcare Conference
Achillion to Present at the 2019 Cantor Fitzgerald Global Healthcare Conference
September 26 2019 05:32 AM

BLUE BELL, Pa., Sept. 26, 2019 (GLOBE NEWSWIRE) -- Achillion Pharmaceuticals, Inc. (Nasdaq: ACHN), a clinical-stage biopharmaceutical company dedicated to transforming the lives of patients and families affected by complement-mediated diseases, today announced that Joseph Truitt, President and Chief Executive Officer of Achillion will present at the 2019 Cantor Fitzgerald Global Healthcare Conference on Thursday, October 3, 2019, at 8:55 a.m. ET at the InterContinental New York Barclay in New York, NY.

Why Achillion Pharmaceuticals Stock Is Jumping Today
Why Achillion Pharmaceuticals Stock Is Jumping Today
September 25 2019 09:00 AM

Investors are responding enthusiastically to a key FDA designation for the biotech's leading pipeline candidate.

Achillion Pharma Wins Big With FDA Breakthrough
Achillion Pharma Wins Big With FDA Breakthrough
September 25 2019 08:40 AM

Achillion Pharmaceuticals Inc. (NASDAQ: ACHN) has announced that the U.S. Food and Drug Administration (FDA) has granted Breakthrough Therapy designation for danicopan (ACH-4471) in combination with a C5 monoclonal antibody for patients with paroxysmal nocturnal hemoglobinuria (PNH) who are suboptimal responders to a C5 inhibitor alone.

Achillion Receives Breakthrough Therapy Designation from FDA for Danicopan for Treatment of Paroxysmal Nocturnal Hemoglobinuria
Achillion Receives Breakthrough Therapy Designation from FDA for Danicopan for Treatment of Paroxysmal Nocturnal Hemoglobinuria
September 25 2019 04:00 AM

– Danicopan Phase 2 PNH combination therapy topline data expected Q4 2019 – – Initiation of Phase 3 planned for early 2020 –

Why Is Achillion (ACHN) Down 11.2% Since Last Earnings Report?
Why Is Achillion (ACHN) Down 11.2% Since Last Earnings Report?
September 07 2019 06:30 AM

Achillion (ACHN) reported earnings 30 days ago. What's next for the stock?

Achillion to Present at the Baird 2019 Global Healthcare Conference
Achillion to Present at the Baird 2019 Global Healthcare Conference
August 29 2019 02:00 PM

BLUE BELL, Pa., Aug. 29, 2019 (GLOBE NEWSWIRE) -- Achillion Pharmaceuticals, Inc. (Nasdaq: ACHN), a clinical-stage biopharmaceutical company dedicated to transforming the lives of patients and families affected by complement-mediated diseases, today announced that Joseph Truitt, President and Chief Executive Officer of Achillion will present at the Baird 2019 Global Healthcare Conference on Thursday, September 5, 2019, at 12:50 p.m. ET at the InterContinental New York Barclay in New York, NY.

Achillion Has Multiple Shots On Goal In The Complement Space
Achillion Has Multiple Shots On Goal In The Complement Space
August 27 2019 11:40 AM

With little sell side coverage, there is no investor awareness of the potential of its compounds ACH-4471 and ACH-5228 in the complement space.

Achillion: Shifted Gears For Success
Achillion: Shifted Gears For Success
August 19 2019 09:37 AM

Achillion Pharmaceuticals delivered extremely robust outcomes for the Phase 1 study of ACH-5228 and thereby galvanized the shares to trade multiple folds higher.

Achillion (ACHN) Reports Wider Y/Y Loss in Q2, Revenues Nil
Achillion (ACHN) Reports Wider Y/Y Loss in Q2, Revenues Nil
August 09 2019 05:24 AM

Achillion (ACHN) meets bottom-line estimates in the second quarter. The absence of an approved product results in no revenues in the quarter.

Achillion
Achillion's Recent Positive Data Points To A Major Inflection Point Moving Forward
July 31 2019 10:51 AM

Achillion Pharmaceuticals reports positive data from a phase 1 study using ACH-5228 as a treatment for complement mediated diseases.

Achillion Pharmaceuticals: Intriguing Data For Next Gen Factor D Inhibitor, Competition Abounds
Achillion Pharmaceuticals: Intriguing Data For Next Gen Factor D Inhibitor, Competition Abounds
July 31 2019 06:15 AM

Shares have risen by 95% over the past five trading days.

Why Achillion Pharmaceuticals Stock Flew Higher Again Today
Why Achillion Pharmaceuticals Stock Flew Higher Again Today
July 26 2019 02:29 PM

Positive results announced earlier this week from an early-stage study led to another day of big gains for this clinical-stage biotech.

Why Achillion Pharmaceuticals Stock Is Soaring Again Today
Why Achillion Pharmaceuticals Stock Is Soaring Again Today
July 23 2019 09:30 AM

The biotech stock is enjoying a second day of big gains after the company reported promising results for experimental drug ACH-5228.

Why Luckin Coffee, Beyond Meat, and Achillion Pharmaceuticals Jumped Today
Why Luckin Coffee, Beyond Meat, and Achillion Pharmaceuticals Jumped Today
July 22 2019 01:30 PM

Find out how these stocks helped lead the overall market higher.

Why Achillion Pharmaceuticals Stock Jumped Today
Why Achillion Pharmaceuticals Stock Jumped Today
July 22 2019 12:41 PM

Great results from an early-stage clinical study provided a big boost to this small biotech.

Why Is Achillion (ACHN) Down 1.4% Since Last Earnings Report?
Why Is Achillion (ACHN) Down 1.4% Since Last Earnings Report?
June 08 2019 06:30 AM

Achillion (ACHN) reported earnings 30 days ago. What's next for the stock?

Achillion (ACHN) Reports Wider-Than-Expected Loss in Q1
Achillion (ACHN) Reports Wider-Than-Expected Loss in Q1
May 13 2019 06:13 AM

Achillion (ACHN) reports narrower year-over-year loss in Q1. The absence of an approved product results in no revenues in the quarter.

What You Need to Know About Achillion Pharmaceuticals
What You Need to Know About Achillion Pharmaceuticals' Q1 Update
May 09 2019 01:00 PM

The clinical-stage biotech didn't have any revenue in the first quarter. But it made progress in several key areas.

Why Is Achillion (ACHN) Up 25.6% Since Last Earnings Report?
Why Is Achillion (ACHN) Up 25.6% Since Last Earnings Report?
April 06 2019 06:30 AM

Achillion (ACHN) reported earnings 30 days ago. What's next for the stock?

Achillion (ACHN) Reports Narrower-Than-Expected Loss in Q4
Achillion (ACHN) Reports Narrower-Than-Expected Loss in Q4
March 08 2019 09:40 AM

Achillion (ACHN) encourages with narrower-than-expected loss in Q4. However, the company did not generate any revenues in the period.

Join over 100,000 investors who get daily notable Earnings alerts with predicted move.