anyone of you guys do earning play

[qlai]

I am saying that the more (unsophisticated) retail traders participate in something, the more opportunities for experienced traders. So if you didn’t trade pre/post before, you may want to start watching the action.

 

[nitrene]

nke, lulu and panw are all on my watchlist. i had nke and lulu for a few years on my watchlist and added panw recently to my watchlist like 6 months ago. i saw nke gap up on last earning and wanted to play lulu yesterday on earning. but didn't cause i got burned by lulu few year ago on earning play. i played mu instead which is also on my watchlist and i got paid with mu after it gap up after hour. bought mu at 81.25 and hold it. and sold it after hour for 86.

all these stonks, i don't randomly pick for earning play. they have been on my watchlist for many weeks, months and years. and then met certain criteria in order for me to play them. i put these stonks on a earning play list for the coming days and weeks and monitor them to see if i'm interested to gamble with them on earning play. earning play is like 50/50 for me so far. it is work on progress for me.

That's probably a safer way to make money and not lose money which is very important.

The method I was trying to describe has short term momentum and sentiment to give you an edge. It doesn't always work. I bought MU calls near the open today and it went straight down so it has a lot more risk than just sticking to good solid companies to trade. Unfortunately Micron is one of those stocks that just moves with $SOX index and it got hammered today so very difficult to make money on the long side.

Another example that has worked is to buy COST calls if it is a good earnings but wait like the next day since IV will go down. Of course if you're just buying the stock it doesn't matter. I bought COST calls the day after earnings on 3/4/22 at ~$520. It just hit $575+ today.

I also use earnings to get into small caps that have blow out earnings. I bought HRT last week after the earnings at ~ $15.66 and it is up to $17 today. I would define a blowout day as 10%+.

Today ARHS (Arhaus) had a blowout earnings. It looks pretty good but it is in the home furnishings sector and that sector has gotten hammered so it could be risky. I bought some at $8.70 and it didn't go anywhere but the market was down most of the day so it might do okay. It did cross above the 50-day SMA so that's a positive.

 

[yank_my doodleitsadandy]

you know earning is on the day after hour or pre hour the next day.

do you trade that stonk that same day and hold it for earning?

if you do, what signal in the chart do you look for during the day to either hold it or get rid of it...or you use a daily chart for earning play?

Yes, it's one of my plays. I'll do my dd and find stocks with a good track record and will likely beat. I'll play the run up but I won't hold through earnings. The ones I will hold thru earnings are the highly shorted stocks. If they have a surprise beat then they'll have a nice pop and if they don't the shorts usually won't take it down much further. I use no charts with these kind of plays.