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Investors like companies that beat analysts' earnings estimates. On the flip side, a company that consistently misses earnings estimates is unattractive in many cases. (investopedia)
What to look for
Sales; Revenue
Earnings per share - profitability
Forward guidance
Step 1: Find out what the market maker is pricing in
Step 2: You have 3 choices.
Purchasing an option in the money on the side you’re anticipating. (paying extra premium)
Purchasing an option just outside that priced in amount, on both sides. (paying less premium but hoping the move goes beyond what the market maker anticipated)
Selling a credit spread outside the anticipated move. (agreeing with the market maker and taking that IV off the top)
STEP 3: More support
FInd out what the analysts are estimating. Knowing what the professionals are thinking and their reasoning behind it can help with the decision making.
Sleeper strat:
The run-up.
If a good earnings is being expected by investors, early buying may start before the release of earnings data
The continuation.
Waiting for the post earnings move and jumping on the train. Premiums will be a little more expensive but probability of profit is more in your favor because the move has already begun
Earnings I’m looking at:
MCD
AAL
MA
MSFT
AMD
SBUX
BA
T
AAPL
TSLA
FB