Earnings Season Playbook: How to Trade Around Quarterly Reports

Earnings Season Overview

Earnings season occurs four times per year when publicly traded companies report quarterly financial results. These reports often trigger significant stock price movements, creating both opportunities and risks for traders.

Trading Strategies

Pre-earnings momentum trading capitalizes on the tendency of stocks to drift in the direction of expected results. Post-earnings drift — the tendency for stocks to continue moving in the direction of the earnings surprise — offers another profitable strategy. Our AI models analyze historical earnings reactions, analyst estimates, and options pricing to predict post-earnings moves.

Risk Management

Earnings announcements can cause gap moves that bypass stop-losses. Size positions accordingly and consider using options to define risk around earnings events.