8 Minute Read

Tackle Today: Post-Earnings Plays

September 10, 2021

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Earnings gaps are compelling


Coach Tyler here. Earnings season comes four times a year. The heart of these quarterly episodes falls in January, April, July, and October. Some traders despise the uncertainty and heightened volatility, but here’s a tip: figure out a way to use them to your advantage.

For myself and Team Phoenix, it’s all about the secondary setups that arise after a robust earnings gap. In a bull market, I focus on companies that just delivered the goods and gapped higher. If they jumped above resistance, triggering a breakout, then even better. The combination of robust fundamentals and a technical catalyst creates a compelling opportunity.

After the up gap, I’m watching the next retracement with interest. Sometimes, we see a high base develop, and I’ll buy on the breakout.  One such candidate worth watching over the coming days is Affirm (AFRM). It’s trading up 20% after-hours in response to earnings. If you think the jump sparks a sustainable uptrend, then there should be more opportunities to come.


Chart of the Day

Affirm Holdings (AFRM)

Affirm earnings last night after the company delivered robust revenue and strong guidance. The jump to $111 is made all the more impressive given that AFRM stock had already jumped 47% in a single bound last month.  

Video of the day

JEDI Options

Coach Tyler explains the importance of understanding reward, risk, and probability when buying and selling #options in this Jedi Options Segment

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