Hey traders, Raghee here.
In this update, we’re gonna talk about the continuation of a conversation we’ve been having. That conversation is about understanding volatility to play earnings. Up until now, we’ve talked quite a bit about the 6-4-2 window. We start six weeks out, four weeks out, then cut off about two weeks ahead of earnings.
That’s what I would call the pre- or, the preparation (the pre-earnings setup) which is my favorite. We look for a double green, we buy the pullbacks, we focus on the continuation, and we get out before earnings.
But, there’s something we can do after earnings.
After earnings is looking at where the market landed after the volatility. We know earnings is a hot zone and we know hot zones have plenty of attention, volume, and volatility. So, I’m gonna take two of the more recent and impactful earnings scenarios that we’ve had and talk about where they sit after the earnings report release.
