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Understanding Volatility to Play Earnings

Today we’re gonna establish a great foundation to the 6-4-2 earnings window. First of all, why do stock, ETF, and futures traders alike — and option traders — need to know about earnings?

Well…

The reason that we need to know about earnings is because earnings are a type of “hot zone.”

What is a “hot zone?”

Back early in my career, I noticed certain volatility events, (in fact, one of the earliest times I noticed the “hot zone”) like when I was playing cotton and the inventory numbers came out. Let’s dive in, Gang:

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What's Up In The Markets?

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Free Downloads

34 EMA Wave, GRaB Candles & Darvas 2.0 Indicator Downloads

Identify trends, sentiment, momentum and key price levels with Raghee's free indicators.

ThinkorSwim

Propulsion Dots Indicator Download

A dynamic indicator based on the comparison of 2 EMAs in the form of buy and sell dots.

ThinkorSwim

Know What's Up In The Markets

Follow Raghee’s FREE Countdown Trader Newsletter to keep up with the what, where and why of trading today's market.

We will never sell your information to any third parties.