Trading stocks & options during earnings period

We had a few productive trades this earnings season and our analyst pulled this one out of the recent trades (for ROKU) to share on this forum. So ROKU had earnings reports this past week and they reported a larger than expected loss on rising revenues and growing subscriptions. The after market earnings report caused a sell-off in the equity which understandably, is a volatile one but liquid enough to trade actively.

So in the after market after the earnings report, we bought some 500 shares and sold it the following day for an overnight buy/hold trade. Then yesterday, we did not consider that this earlier trade in the underlying stock was not quite good enough, and therefore indulged in a straight option call on our favorite day of the week to make those bonus options trades, yes Thursday. So here are the trades for you to see that we extracted from our trade transactions export ahead of the statements which are only available tomorrow:

Trade summary

roku-11819

We present options and stock trade ideas for our weekly swing trade newsletter subscribers and ROKU was in that newsletter as well. During earnings season, and as a trader, all one can do is wait for the news to evolve and then enter the trade knowing why reactionary moves occur after earnings.

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