rjm77me's Blog : Safer way to play Earning season

Most of the stocks do go up leading to earning.

One should start looking at earning plays with 7 to 10 days to earning announcement. Then seek 10 stock you like to play with.

Look at the daily stock chart and see if there is some room to up side or down side. Next step is check 3 days chart - if your chating software allow it. I use Tele-chart and it proved great way to see what happened in last 4 earning news. Just eye ball spikes three months ago

Decide you buy and take profit / loss point. enter and manage trade.

IExapmple - PEP - earning is next week Thursday and stock has room to move up by about $2. This means it can be a nice play using options. Options volatility also goes up on day or day before of announcement.

See VISA, YUM as other examples. I did get out of VISA today as I did not want to roll the dice on VISA due to slightly negative bias. I had bought some options last week. sold yesterday - bought back yesterday. Sold around noon and did not have to worry about profit or loss.

I did stay in YUM as it does have some positive bias and normally beats earning. There was reasonable risk and reward. I will enter VISA trade again in next couple of days.

Please do your own home work.

LOVE TO HEAR HOW YOU PLAY THE EARNING GAME

Regards

RJM