Coach Mark here.

Earnings season is certainly kicking in full gear today with large companies reporting in numerous sectors of the market. What stands out to me is the price action. You are having large moves in both directions. For example, at the time of this writing:

• SPOT – Up nearly 13%
• UPS – Down nearly 13%
• GE – Up nearly 7%
• GM – Down nearly 6%
• CMCSA – Down nearly 6%

A couple of thoughts on this. First, it is a natural reminder of the volatile nature of earnings. Second, when I start seeing moves on large companies noticeably above market maker expectations it opens the playbook for earnings strategies that can take advantage of this and other strategies where you might want to be more cautious. For example, short-strangle strategies in an explosive market might not work as well in this earnings environment compared to others.

In the Trading lounge today and in the Coaches Show tonight we will discuss earnings and strategies that fit the current environment.

Have a fantastic Tuesday and be sure to check those earnings dates on trades you might have!

Chart of the Day: Spotify (SPOT)

Spotify (SPOT) was one of the earnings winners today. Gapping up over a multi-month consolidation pattern it is squarely on secondary pattern watch now.

Today’s lineup

Traders Lounge 1 PM EST

Join the coaches in this live lounge, ask questions, discuss ideas or just sit back and listen to veteran traders discuss market conditions.

Weekend Reports

Watch the Stock, Options, Commodity, and Tackle Newsletter Reports to help you prepare for the week.

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