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Earnings season is where the biggest market moves happen, but most traders approach it the wrong way. They either gamble on a stock’s direction before a report or try to chase a move after it’s already happened. If you want to trade earnings correctly, you need a plan that puts probabilities in your favor.
The Smart Way to Play Pre-Earnings Moves
One of the easiest ways to profit from earnings season is by identifying strong option flow ahead of a report. Stocks like Nvidia (NVDA), TJX Companies (TJX), and eBay (EBAY) all have earnings this week, and the key is to watch for aggressive buying in call or put options leading up to the event.
Take Workday (WDAY), for example. Earlier this week, we spotted a series of unusual call buys in the stock. It wasn’t just a few contracts — it was big money positioning ahead of a potential move. By the time earnings came around, those calls had doubled. That’s the kind of setup you want to look for.
If you don’t have access to a News Flow Scanner, you’re trading blind. You won’t see the big-money bets that are tipping off where a stock might move. And when you’re trading earnings, that’s the difference between catching a major breakout and getting stuck on the wrong side of a move.
Post-Earnings Moves Can Be Even Better
If you miss the pre-earnings trade, don’t chase. A stock’s first move after earnings is often a head fake. The real opportunity comes after the dust settles.
The best post-earnings setups happen when a stock drops on good numbers. If a company beats expectations but the stock sells off, it’s usually a knee-jerk reaction from short-term traders taking profits.
That’s where you step in.
This happens all the time with stocks that have high expectations priced in. If Nvidia sells off on earnings but the numbers are strong, you’ll probably see big funds stepping in to buy the dip. That’s when you want to look for a bounce play.
The bottom line? Earnings season is full of opportunities, but you have to know what to look for. Follow the money before the report, and don’t rush into the first move after. The market loves to shake out weak hands before making the real move — don’t let that be you.
Lance Ippolito Trading Team
Lance doesn’t want the CCP spying on him, so you’ll never find him on TikTok. Same goes for other social media sites, which are filled with impersonators, scammers and crypto bros.
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*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.
P.S. Nvidia Earnings Roundtable — LIVE at 2:30 PM ET!
We’ll be LIVE soon to show you exactly how you can prepare for Nvidia’s market-moving earnings report…
And how you can play it post-earnings!
