Verizon (VZ), American Express (AXP), Microsoft (MSFT), Starbucks (SBUX), Apple (AAPL) and Tesla (TSLA) are just a few of the stocks I’ll be looking to trade.
See how to profit from these stocks whether their earnings announcements are good or bad.
But there is one stock that I have my eyes on . . . Mastercard (MA).
Over the last ten earnings cycles, Mastercard has a max move of 5.23% to the upside and -4.86 to the downside. In fact, those are the largest post-earnings open moves since Jan. 31, 2014 . . . roughly seven years ago.
Now, if we look at the expected move for Mastercard immediately following the Mastercard earnings report before the opening bell on Thursday, we can see that the market anticipates a move somewhere between $320 and $347.50.
Of course, by the time Wednesday rolls around the $27.50 range will shift a bit due to the price of the stock shifting around prior to Mastercard earnings, but the market still expects a move within a range of roughly 3.9% to the upside and 4.3% to the downside . . . slightly within the max moves made seven years ago.
Now you are probably asking yourself, what the hell does all this mean? How is the info above useful when trading earnings?
Well, after testing years of data, the Tastytrade research team found that “the price of a stock after an earnings announcement stayed within the expected move range about 80% of the time for their data set.”
So, if we know that 80% of the time a stock stays within its expected move immediately following an earnings announcement, a world of strategies becomes available to us.
In my upcoming webinar, I plan to discuss the step-by-step process on how I plan to trade Mastercard earnings, followed up by sending out a real-time alert with all my Mastercard earnings trade details.