![]() Generally won’t significantly affect the options price, unlike an “action” stock, This trade is practical due to the low-to-moderate price-move after the EA, which In assessing this trade, you need to do your homework to ensure you collect sufficient You then close the position right after the EA by buying the option back much cheaperĭue to the significant drop in IV that occurs after the mystery of the EA disappears. Theīasic trade idea is to sell put or call options right before the EA, collectingĪ credit when options premium is very high due to elevated implied volatility (IV). ![]() ![]() Low-to-moderate price moves (≤4%) following their Earnings Announcements (EA). The Volatility Crush strategy is used with stocks that typically experience relatively Volatility Crush Strategy - Best for Options Traders Close the position in 7-10 days, or possibly earlier based on price move.Buy the stock if stock has reacted positively.Earnings Date End Date : Current Date + -2 Days.Earnings Date Start Date : Current Date + -1 Day.The screen includes those stocks whose Earnings just came out in last two days. Stocks exhibiting negative post-EA price moves are sell/short-candidates.Stocks exhibiting positive post-EA price moves are buy-candidates.This popular StockEarnings screen below will give you a list of stocks that historicallyĮxhibit significant price momentum following an EA for the next seven days: If you see postĮA-momentum is halted or reversed by a significant opposite move, re-evaluate your The 7-10 day scenario is the maximum trade hold-time. Important: Ride-the-Wave is predicated on significant price momentum triggeredīy an EA. then buy-to-close after 7-10 days, or possibly earlier if a desired price target.near the close of the following day for a post-market-EA.near the close of trading the EA-day for a premarket-EA.short a stock one day post-EA if a stock reacts negatively post-earnings:.Sell-to-close after 7-10 days, or possibly earlier if a desired price target is.Near the close of the following day for a post-market-EA.Near the close of trading the EA-day for a pre-market-EA.Buy a stock one day post-EA if a stock reacts positively post-earnings:.Ride-the-Wave targets multi-day price momentum following a company’s earnings announcement Both were roughly the same as the 23 cents-per-share dividend and previous $90 billion share repurchase increase the company announced a year ago.Ride-the-Wave Strategy – Best for Stock Traders Cook said Apple now has 975 million subscribers on its platform, which includes both Apple services and third-party apps, up from 935 million last quarter and an increase of 150 million from a year ago.Īpple said its board of directors authorized a 24 cents-per- share dividend in addition to share repurchases. Sales in Apple's wearables business, which includes devices like AirPods and the Apple Watch, fell less than 1% to $8.76 billion, compared with estimates of a 4.4% drop to $8.4 billion.Īpple's biggest growth segment was its services business, which includes products like iCloud and Apple Pay, which grew 5.5% to $20.9 billion, in line with analyst expectations. Apple's sales fared only slightly better than PC unit shipments in the market, which fell 33% in the calendar first quarter, according to Canalys data. Mac sales fell more than 30% to $7.17 billion compared with analyst estimates of a 25% decline to $7.8 billion, according to Refinitiv. Those results occurred against the backdrop of a 13% decline in global smartphone shipments during the first three months of 2023, during which the research firm Canalys said Apple gained market share against Android rivals. IPhone sales rose 1.5% to $51.33 billion, compared with analyst expectations of a 3.3% decline to $48.9 billion, according to Refinitiv. Bloomberg has reported the iPhone maker could unveil a mixed-reality headset as soon as next month, when it holds its annual software developer conference. Other firms in the industry have predicted a rebound in the second half of the year, and Wall Street expects Apple to recover faster and show modest year-over-year revenue growth during its fiscal third quarter ending in June.Īpple has in recent weeks announced new service businesses such as a high-yield savings account, but investors are still waiting to see the company's next major hardware product. "Long-term, emerging markets are important, especially India from a supply chain and sales standpoint." "Apple still needs China on a near-term basis to drive sales and profits," said Tom Forte of D.A. Sales in China also dropped 2.9% to $17.8 billion, a slightly larger drop than overall revenue. "We had no material shortages at all during the quarter across any of the products," he said.īut not all of Apple's business lines were immune to the electronics slump, with sales of Macs falling sharply while iPad revenue slipped. Cook also said supply-chain snarls have vanished.
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