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.

ANH MENU
ANH
CLOSE
REITs Eye Uneven Recovery
REITs Eye Uneven Recovery
March 20 2021 12:00 PM

U.S. equity markets finished modestly lower on a choppy week as assurances from the Fed of a "lower-for-longer" policy regime didn't slow the continued march higher in long-term interest rates. Retreating from record closing highs last week, the S&P 500 declined by 1.2% this past week as large-cap technology stabilized while Small-Cap stocks dipped by more than 3%.

Ready Capital Corporation and Anworth Mortgage Asset Corporation Announce Completion of Merger
Ready Capital Corporation and Anworth Mortgage Asset Corporation Announce Completion of Merger
March 19 2021 03:22 PM

NEW YORK, March 19, 2021 /PRNewswire/ -- Ready Capital Corporation (NYSE: RC) ("Ready Capital" or the "Company") and Anworth Mortgage Asset Corporation (NYSE: ANH) ("Anworth") jointly announced today that they have completed the previously announced merger pursuant to the terms of the Agreement and Plan of Merger, dated as of December 6, 2020, by and among Ready Capital, Anworth and RC Merger Subsidiary, LLC, a Delaware limited liability company and a wholly owned subsidiary of Ready Capital (the "Merger Agreement"). As of the closing of trading on March 19, 2021, Anworth ceased to be publicly traded and its common stock and preferred stock was suspended from trading on the NYSE.

Anworth Stockholders Approve Merger with Ready Capital Corporation
Anworth Stockholders Approve Merger with Ready Capital Corporation
March 17 2021 01:05 PM

SANTA MONICA, Calif.--(BUSINESS WIRE)---- $ANH #anworth--Anworth announced that its stockholders have approved the Merger transaction with Ready Capital Corporation with 95.24% of votes cast in favor.

Anworth Announces Increase to Series B Preferred Stock Conversion Rate
Anworth Announces Increase to Series B Preferred Stock Conversion Rate
March 15 2021 01:05 PM

SANTA MONICA, Calif.--(BUSINESS WIRE)---- $ANH #anworth--The conversion rate of Anworth's Ser. B Cumulative Convertible Pfd Stock will increase to 6.2235 shares of its common stock effective March 16, 2021.

Anworth Announces Anticipated Closing Date of Merger to Holders of Series B Preferred Stock
Anworth Announces Anticipated Closing Date of Merger to Holders of Series B Preferred Stock
March 04 2021 02:05 PM

SANTA MONICA, Calif.--(BUSINESS WIRE)---- $ANH #REIT--Anworth Mortgage announced to holders of our Series B Cumulative Convertible Preferred Stock the closing date of the Merger to be March 19, 2021.

7 Penny Stock Companies That Pay Nice Dividends
7 Penny Stock Companies That Pay Nice Dividends
March 03 2021 11:03 AM

Penny stocks are penny stocks for a reason. Many will go bankrupt.

Anworth Declares a $0.04 Per Share Common Stock Dividend
Anworth Declares a $0.04 Per Share Common Stock Dividend
February 26 2021 08:42 AM

SANTA MONICA, Calif.--(BUSINESS WIRE)---- $ANH #REIT--Anworth Mortgage declared a common stock dividend of $0.04 per share, payable on March 18, 2021 to common holders of record as of March 15, 2021.

Anworth Mortgage Asset Corporation (ANH) CEO Joe McAdams on Q4 2020 Results - Earnings Call Transcript
Anworth Mortgage Asset Corporation (ANH) CEO Joe McAdams on Q4 2020 Results - Earnings Call Transcript
February 24 2021 02:43 PM

Anworth Mortgage Asset Corporation (ANH) CEO Joe McAdams on Q4 2020 Results - Earnings Call Transcript

Rapidly Rising Rates Spur Further REIT Recapitalization
Rapidly Rising Rates Spur Further REIT Recapitalization
February 24 2021 12:06 PM

Rates on 10-Year Treasuries are up 44 basis points since December. COVID stimulus is expected to juice 2021 GDP.

Anworth Reports Fourth Quarter 2020 Financial Results
Anworth Reports Fourth Quarter 2020 Financial Results
February 23 2021 02:05 PM

SANTA MONICA, Calif.--(BUSINESS WIRE)---- $ANH #REIT--Anworth Mortgage reported core earnings of $4.7 million, or $0.05 per weighted common share, for the fourth quarter ended December 31, 2020.

Anworth Schedules Fourth Quarter 2020 Earnings Release and Conference Call
Anworth Schedules Fourth Quarter 2020 Earnings Release and Conference Call
February 22 2021 10:45 AM

SANTA MONICA, Calif.--(BUSINESS WIRE)---- $ANH #anworth--Anworth will release its Q4 financial results on Feb. 23, 2021 at the halt of trading and will host its Q4 earnings call on Feb. 24, 2021 at 1 pm ET.

Rates Go Higher, Preferreds Pull Back, Opportunities Arise
Rates Go Higher, Preferreds Pull Back, Opportunities Arise
February 08 2021 04:00 AM

Higher rates have caused a decline in the preferreds market creating some opportunities. In a rising rate environment, focus on issues with limited duration, high coupons and ones that are pinned to par.

Anworth Announces 2020 Dividend Tax Information
Anworth Announces 2020 Dividend Tax Information
February 02 2021 02:05 PM

SANTA MONICA, Calif.--(BUSINESS WIRE)---- $ANH #REIT--Anworth Mortgage announced the tax treatment for its dividend distributions for the Company's fiscal year ended December 31, 2020.

ANWORTH MORTGAGE INVESTOR ALERT By the Former Attorney General of Louisiana: Kahn Swick & Foti, LLC Investigates Adequacy of Price and Process in Proposed Sale of Anworth Mortgage Asset Corporation - ANH
ANWORTH MORTGAGE INVESTOR ALERT By the Former Attorney General of Louisiana: Kahn Swick & Foti, LLC Investigates Adequacy of Price and Process in Proposed Sale of Anworth Mortgage Asset Corporation - ANH
December 29 2020 03:45 PM

NEW ORLEANS--(BUSINESS WIRE)--Former Attorney General of Louisiana Charles C. Foti, Jr., Esq. and the law firm of Kahn Swick & Foti, LLC (“KSF”) are investigating the proposed sale of Anworth Mortgage Asset Corporation (NYSE: ANH) to Ready Capital Corporation (NYSE: RC). Under the terms of the proposed transaction, shareholders of Anworth will receive only 0.1688 shares of Ready Capital common stock and $0.61 of cash consideration for each share of Anworth that they own. KSF is seeking to d

Lifshitz Law Firm, P.C. Announces Investigation of ANH, RC, CPAH, GIK, MTSC, WORK, CRM, TGC, UROV, and WDR
Lifshitz Law Firm, P.C. Announces Investigation of ANH, RC, CPAH, GIK, MTSC, WORK, CRM, TGC, UROV, and WDR
December 19 2020 07:24 PM

NEW YORK, Dec. 19, 2020 /PRNewswire/ -- Anworth Mortgage Asset Corporation (NYSE: ANH) - Ready Capital Corporation (NYSE: RC) Lifshitz Law Firm, P.C. announces investigation into possible breach of fiduciary duties in connection with the sale of ANH to RC for 0.1688 RC shares per share....

Anworth Declares a $0.05 Per Share Fourth Quarter Common Stock Dividend
Anworth Declares a $0.05 Per Share Fourth Quarter Common Stock Dividend
December 16 2020 02:05 PM

SANTA MONICA, Calif.--(BUSINESS WIRE)---- $ANH #REIT--Anworth (ANH) announced that its Board declared a Q4 common dividend of $0.05 per share, payable Jan. 29, 2021 to common holders as of Dec. 31, 2020.

SHAREHOLDER ALERT: Monteverde & Associates PC Announces an Investigation of Anworth Mortgage Asset Corp. - ANH
SHAREHOLDER ALERT: Monteverde & Associates PC Announces an Investigation of Anworth Mortgage Asset Corp. - ANH
December 14 2020 08:05 AM

NEW YORK, Dec. 14, 2020 /PRNewswire/ -- Juan Monteverde, founder and managing partner at Monteverde & Associates PC, a national securities firm headquartered at the Empire State Building in New York City, is investigating Anworth Mortgage Asset Corp. ("Anworth" or the "Company") (ANH)...

SHAREHOLDER ALERT: WeissLaw LLP Investigates Anworth Mortgage Asset Corporation
SHAREHOLDER ALERT: WeissLaw LLP Investigates Anworth Mortgage Asset Corporation
December 09 2020 11:57 AM

NEW YORK, Dec. 9, 2020 /PRNewswire/ -- WeissLaw LLP is investigating possible breaches of fiduciary duty and other violations of law by the board of directors of Anworth Mortgage Asset Corporation ("ANH" or the "Company") (NYSE: ANH) in connection with the proposed acquisition of the...

SHAREHOLDER ALERT: Rigrodsky & Long, P.A. Announces Investigation of Anworth Mortgage Asset Corporation Merger
SHAREHOLDER ALERT: Rigrodsky & Long, P.A. Announces Investigation of Anworth Mortgage Asset Corporation Merger
December 07 2020 01:29 PM

WILMINGTON, Del., Dec. 07, 2020 (GLOBE NEWSWIRE) -- Rigrodsky & Long, P.A. announces that it is investigating Anworth Mortgage Asset Corporation (“Anworth”) (NYSE: ANH) regarding possible breaches of fiduciary duties and other violations of law related to Anworth's agreement to be acquired by Ready Capital Corporation (“Ready Capital”) (NYSE: RC). Under the terms of the agreement, Anworth's shareholders will receive 0.1688 shares of Ready Capital common stock per share.

Shareholder Alert: Ademi LLP Investigates whether Anworth Mortgage Asset Corporation has obtained a Fair Price in its transaction with Ready Capital Corporation
Shareholder Alert: Ademi LLP Investigates whether Anworth Mortgage Asset Corporation has obtained a Fair Price in its transaction with Ready Capital Corporation
December 07 2020 10:02 AM

MILWAUKEE, Dec. 7, 2020 /PRNewswire/ -- Ademi LLP is investigating Anworth Mortgage Asset Corporation (NYSE:ANH) for possible breaches of fiduciary duty and other violations of the law in its transaction with Ready Capital. Click here to learn how to join the action:...

Anworth Merger Investigation: Halper Sadeh LLP Announces Investigation Into Whether the Sale of Anworth Mortgage Asset Corporation Is Fair to Shareholders; Investors Are Encouraged to Contact the Firm – ANH
Anworth Merger Investigation: Halper Sadeh LLP Announces Investigation Into Whether the Sale of Anworth Mortgage Asset Corporation Is Fair to Shareholders; Investors Are Encouraged to Contact the Firm – ANH
December 07 2020 08:23 AM

NEW YORK--(BUSINESS WIRE)--Halper Sadeh LLP, a global investor rights law firm, is investigating whether the sale of Anworth Mortgage Asset Corporation (NYSE: ANH) to Ready Capital Corporation is fair to Anworth shareholders. Under the terms of the merger agreement, each share of Anworth common stock will be converted into 0.1688 shares of Ready Capital common stock and $0.61 of cash consideration. Halper Sadeh encourages Anworth shareholders to click here to learn more about their legal rights

Ready Capital And Anworth Mortgage Asset Corporation Announce Merger Transaction
Ready Capital And Anworth Mortgage Asset Corporation Announce Merger Transaction
December 07 2020 04:25 AM

NEW YORK and SANTA MONICA, Calif., Dec. 7, 2020 /PRNewswire/ -- Ready Capital Corporation (NYSE:RC) ("Ready Capital"), a multi-strategy real estate finance company that originates, acquires, finances and services small- to medium-sized balance commercial loans, and Anworth Mortgage Asset...

The 11%-Yielding Industry Nobody Pays Attention To
The 11%-Yielding Industry Nobody Pays Attention To
December 06 2020 07:57 AM

Good news: There is indeed some potential (and dividends) we can squeeze out of this space.

Zero Interest Rate Blues? +7% Yield Preferred To Hold Forever: Anworth
Zero Interest Rate Blues? +7% Yield Preferred To Hold Forever: Anworth
November 26 2020 06:35 AM

Mortgage fundamentals remain very strong. We have talked about agency and non-agency mREITs, now we look at a hybrid.

Anworth Mortgage Asset
Anworth Mortgage Asset's Preferred Shares Are Trading Near Common Share Yields
November 18 2020 10:28 AM

Anworth Mortgage Asset is an mREIT that has been crunched by the COVID-19 pandemic. The company's operating cash flow appears able to support its dividend.

Anworth Mortgage Asset Corporation (ANH) CEO Joseph McAdams on Q3 2020 Results - Earnings Call Transcript
Anworth Mortgage Asset Corporation (ANH) CEO Joseph McAdams on Q3 2020 Results - Earnings Call Transcript
November 07 2020 12:08 AM

Anworth Mortgage Asset Corporation (ANH) CEO Joseph McAdams on Q3 2020 Results - Earnings Call Transcript

Anworth Announces Preferred Stock Dividends
Anworth Announces Preferred Stock Dividends
November 05 2020 02:05 PM

SANTA MONICA, Calif.--(BUSINESS WIRE)---- $ANH #REIT--The Board of Anworth Mortgage declared the Company's Q4 Series A, B, and C preferred dividends, each payable 01-15-21 to holders as of 12-31-20.

Anworth Reports Third Quarter Financial Results
Anworth Reports Third Quarter Financial Results
November 03 2020 02:05 PM

SANTA MONICA, Calif.--(BUSINESS WIRE)---- $ANH #REIT--Anworth Mortgage Asset Corporation reported Q3 2020 core earnings of $3.6 million, or $0.04 per weighted share.

Anworth Schedules Third Quarter Earnings Release and Conference Call
Anworth Schedules Third Quarter Earnings Release and Conference Call
November 02 2020 10:45 AM

SANTA MONICA, Calif.--(BUSINESS WIRE)---- $ANH #REIT--Anworth Mortgage will issue its Q3 earnings release after the close on Nov. 3, 2020 and host the related earnings call on Nov. 4, 2020 at 1:00 pm EST.

Skipping Preferred Share Dividend Captures For A Quarter
Skipping Preferred Share Dividend Captures For A Quarter
September 28 2020 09:54 PM

We anticipate investors may switch their focus back and forth between 2020-Q4 and 2021-Q1 several times before the end of the 2020 calendar year.

Anworth Mortgage
Anworth Mortgage's Value Creation Since Its IPO May Offer Insights Into Its Future Returns
August 16 2020 01:24 PM

Anworth Mortgage is a REIT that invests in residential mortgages and mortgage-backed securities.

Anworth Mortgage Asset Corporation (ANH) CEO Joseph McAdams on Q2 2020 Results - Earnings Call Transcript
Anworth Mortgage Asset Corporation (ANH) CEO Joseph McAdams on Q2 2020 Results - Earnings Call Transcript
August 04 2020 03:59 PM

Anworth Mortgage Asset Corporation (ANH) CEO Joseph McAdams on Q2 2020 Results - Earnings Call Transcript

A Worrisome Market: 2 Top Buys For Yield
A Worrisome Market: 2 Top Buys For Yield
March 09 2020 04:01 AM

A Worrisome Market: 2 Top Buys For Yield

Anworth Mortgage Asset
Anworth Mortgage Asset's (ANH) CEO Joe McAdams on Q4 2019 Results - Earnings Call Transcript
February 27 2020 09:10 AM

Anworth Mortgage Asset's (ANH) CEO Joe McAdams on Q4 2019 Results - Earnings Call Transcript

Anworth Mortgage Asset
Anworth Mortgage Asset's (ANH) CEO Joe McAdams on Q3 2019 Results - Earnings Call Transcript
November 05 2019 01:39 PM

Anworth Mortgage Asset's (ANH) CEO Joe McAdams on Q3 2019 Results - Earnings Call Transcript

Anworth Mortgage Asset Corporation (ANH) CEO Joseph McAdams on Q2 2019 Results - Earnings Call Transcript
Anworth Mortgage Asset Corporation (ANH) CEO Joseph McAdams on Q2 2019 Results - Earnings Call Transcript
August 05 2019 04:12 PM

Anworth Mortgage Asset Corporation (ANH) CEO Joseph McAdams on Q2 2019 Results - Earnings Call Transcript

Anworth Mortgage Asset Corporation (ANH) CEO Joseph McAdams on Q1 2019 Results - Earnings Call Transcript
Anworth Mortgage Asset Corporation (ANH) CEO Joseph McAdams on Q1 2019 Results - Earnings Call Transcript
May 06 2019 12:46 PM

Anworth Mortgage Asset Corporation (ANH) CEO Joseph McAdams on Q1 2019 Results - Earnings Call Transcript

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