Blind Earnings Trades - Observations on Volumes and Quick Fingers

I actually was targeting RAD for this week, I really like how responsive it is to earnings calls (as evidenced by either large gaps in between days where earnings are reported, or significantly sized candles). Ideally we’ll see movement like we did last year this time, where following the earnings call there was a ~33% change in price over a 24 hours period. RAD is premarket though, so using this strategy may be a bit more of a coin toss. Looking at the last three days, though, it does have the tells that I’ve outlined above and seems to behave well so it may be worth a gamble. Low price also means cheaper options so the risk may be less.

MU is another that appears to be earnings sensitive and is also an after-hours earning which is more in my wheelhouse. However over the past couple weeks MU has not been one that has abided well by this rule. I’ve also noticed with this one that in this final window if the movement is big it actually is directly contrary to Item 2 above. I would say if you play this one, only do it if there is a giant swing in the final 15 and then position yourself in that direction.

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