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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.

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Gainey McKenna & Egleston Announces A Class Action Lawsuit Has Been Filed Against Bank of America Corporation (BOA)
October 19 2026 07:44 AM

NEW YORK, Oct. 19, 2026 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the United States District Court for the Northern District of California on behalf of all persons or entities who purchased or otherwise acquired Bank of America Corporation (BAC or the Company) (NYSE: BAC) securities between August 1, 2025 and October 13, 2026, inclusive (the Class Period).

Hagens Berman Investigates Bank of America (NYSE: BAC) Securities Fraud Following $1.2B Treasury Penalty for AML Violations; Investors Encouraged to Contact Firm
Hagens Berman Investigates Bank of America (NYSE: BAC) Securities Fraud Following $1.2B Treasury Penalty for AML Violations; Investors Encouraged to Contact Firm
October 19 2026 07:30 AM

SAN FRANCISCO, Oct. 19, 2026 (GLOBE NEWSWIRE) -- National securities litigation law firm Hagens Berman alerts investors in Bank of America Corporation (NYSE: BAC) to a securities class action lawsuit filed in federal court against Bank of America and certain senior executives alleging violations of federal securities laws. The firm urges investors with substantial losses to submit their trading information.

Should You Buy Bank of America Stock After a $1.2 Billion Regulatory Fine?
Should You Buy Bank of America Stock After a $1.2 Billion Regulatory Fine?
October 19 2026 05:00 AM

In addition to the regulatory fine, Bank of America is coming off a disappointing earnings report. Still, anti-money-laundering violations are not uncommon among large money-center banks.

BAC Investigation Alert: Bank of America Investors that Lost Money after the 4% Stock Drop are Notified to Contact BFA Law
BAC Investigation Alert: Bank of America Investors that Lost Money after the 4% Stock Drop are Notified to Contact BFA Law
October 19 2026 03:07 AM

NEW YORK, Oct. 19, 2026 (GLOBE NEWSWIRE) -- Leading securities law firm  Bleichmar Fonti & Auld LLP announces an investigation into Bank of America Corporation (NYSE:BAC) for potential securities fraud and its senior officers for potential breaches of fiduciary duty after its significant stock drop. If you invested in Bank of America securities or are a current holder of Bank of America stock, you are encouraged to obtain additional information by visiting: https://www.bfalaw.com/cases/bank-of-america-class-action-lawsuit.

ROSEN, TRUSTED INVESTOR COUNSEL, Encourages Bank of America Corporation Investors to Inquire About Securities Class Action Investigation - BAC
ROSEN, TRUSTED INVESTOR COUNSEL, Encourages Bank of America Corporation Investors to Inquire About Securities Class Action Investigation - BAC
October 18 2026 03:16 PM

New York, New York--(Newsfile Corp. - October 18, 2026) - WHY: Rosen Law Firm, a global investor rights law firm, announces an investigation of potential securities claims on behalf of shareholders of Bank of America Corporation (NYSE: BAC) resulting from allegations that Bank of America may have issued materially misleading business information to the investing public. SO WHAT: If you purchased Bank of America securities you may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arrangement.

ROSEN, RECOGNIZED INVESTOR COUNSEL, Encourages Bank of America Corporation Investors to Inquire About Securities Class Action Investigation - BAC
ROSEN, RECOGNIZED INVESTOR COUNSEL, Encourages Bank of America Corporation Investors to Inquire About Securities Class Action Investigation - BAC
October 17 2026 01:18 PM

New York, New York--(Newsfile Corp. - October 17, 2026) - WHY: Rosen Law Firm, a global investor rights law firm, announces an investigation of potential securities claims on behalf of shareholders of Bank of America Corporation (NYSE: BAC) resulting from allegations that Bank of America may have issued materially misleading business information to the investing public. SO WHAT: If you purchased Bank of America securities you may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arrangement.

Labaton Keller Sucharow LLP Files Securities Class Action Against Bank of America Corporation and Certain of Its Executives
Labaton Keller Sucharow LLP Files Securities Class Action Against Bank of America Corporation and Certain of Its Executives
October 16 2026 04:04 PM

NEW YORK--(BUSINESS WIRE)--Labaton Keller Sucharow LLP (“Labaton”) has filed a securities class action lawsuit (the “Action”) on behalf of its client the New England Teamsters Pension Fund (“New England Teamsters”) against Bank of America Corporation (“Bank of America” or the “Company”) (NYSE: BAC) and certain of its executives (collectively, “Defendants”). The Action, which is captioned New England Teamsters Pension Fund v. Bank of America Corporation., No. 26-cv-09137 (S.D.N.Y.), asserts claim.

Bank of America Declares Preferred Stock Dividends Payable in November and December 2026
Bank of America Declares Preferred Stock Dividends Payable in November and December 2026
October 16 2026 01:15 PM

CHARLOTTE, N.C., Oct. 16, 2026 /PRNewswire/ -- Bank of America Corporation today announced the Board of Directors has authorized regular cash dividends on the outstanding shares or depositary shares of the following series of preferred stock:  Series of Preferred Stock Dividend per Share or Depositary Share 1 Record Date Payment Date Floating Rate Non-Cumulative Preferred Stock, Series E $0.27806 October 30 November 16 Floating Rate Non-Cumulative Preferred Stock, Series F $1,151.69600 November 30 December 15 Adjustable Rate Non-Cumulative Preferred Stock, Series G $1,151.69600 November 30 December 15 Floating Rate Non-Cumulative Preferred Stock, Series 1 $0.29867 November 15 November 30 Floating Rate Non-Cumulative Preferred Stock, Series 2 $0.29892 November 15 November 30 Floating Rate Non-Cumulative Preferred Stock, Series 4 $0.30531 November 15 November 30 Floating Rate Non-Cumulative Preferred Stock, Series 5 $0.28761 November 1 November 23 6.000% Non-Cumulative Preferred Stock, Series GG $0.3750000 November 1 November 16 5.375% Non-Cumulative Preferred Stock, Series KK $0.3359375 December 1 December 28 5.000% Non-Cumulative Preferred Stock, Series LL $0.3125000 December 1 December 17 4.250% Non-Cumulative Preferred Stock, Series QQ $0.2656250 November 1 November 17 4.750% Non-Cumulative Preferred Stock, Series SS $0.2968750 November 1 November 17 1  Each series of preferred stock, other than Series F and Series G, is represented by depositary shares.

Rosen Law Firm Encourages Bank of America Corporation Investors to Inquire About Securities Class Action Investigation - BAC
Rosen Law Firm Encourages Bank of America Corporation Investors to Inquire About Securities Class Action Investigation - BAC
October 16 2026 12:00 PM

New York, New York--(Newsfile Corp. - October 16, 2026) - Why: Rosen Law Firm, a global investor rights law firm, announces an investigation of potential securities claims on behalf of shareholders of Bank of America Corporation (NYSE: BAC) resulting from allegations that Bank of America may have issued materially misleading business information to the investing public. So What: If you purchased Bank of America securities you may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arrangement.

Bank of America Stock Sell-Off Looks Like a Buying Opportunity
Bank of America Stock Sell-Off Looks Like a Buying Opportunity
October 16 2026 10:32 AM

While its Q3 results align with the broader financial sector, suggesting a cyclical investment peak in Q2, investors should not get this signal wrong. A peak is a peak, except when the economy is expanding versus contracting.

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