Always keep track of the upcoming quarterly earnings date for the company before you buy its stock.
The stock movement closer to earnings is tied to the short term betting on whether the company would beat or miss earnings. The betting is done in the form of puts/calls, short selling, and day traders.
Stay away from buying a stock closer to earnings date as the stock price might not be reflective of the company’s fundamentals but is more tied to the gambling on earning results.
Also, don’t buy a stock immediately following the earnings as the movement might be due to the bets being taken off. Wait for the volatility to stabilize following the earnings to pick a price point that is a reasonable reflection of the earnings and the guidance forward. 3 days after earnings is a good time to wait for selling or buying to exhaust, at which time the stock might present itself a good price point to get in.
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