An Ugly Q3 Earnings Season Could Actually Be Good for the Markets
Q3 earnings season shifts into high gear on Oct. 14, when several of the country’s largest banks reveal their financial results from the most recent quarter
Q3 earnings season shifts into high gear on Oct. 14, when several of the country’s largest banks reveal their financial results from the most recent quarter
“Expected Move” refers to the market’s expectation for future movement in a given underlying, and this metric can be a helpful tool to lean on during earnings season.
When the VIX is elevated—as it is now—options and volatility traders benefit not only from an increase in market-wide volatility, but also from the bump that’s traditionally associated with quarterly earnings.
Day traders shoot for frequent gains in multiple positions across a spectrum of asset classes by utilizing strategies revolving around scalping, news, trends, mean reversion and money flows
Implied volatility tends to get crushed after an earnings event, but research suggests that short premium trades enjoy high win rates both before after the day of earnings.
“Trading the news” refers to a strategic trading/investing approach that typically involves “buying the rumor” and “fading the news.”
Due to dissipating volatility in the financial markets, investors and traders may need to adjust their playbooks for the remainder of 2021—as evidenced by the recent drop in the CBOE Volatility Index (VIX).