On January 25th, I recommended my strategy on how to make 4% a week during this earnings season.
In this article, I explained that the golden path to earnings is to only trade once the odds are in your favor. What I mean by that is to only trade companies which have a proven record of robust percentage change in stock price on the earnings day itself. Short those stocks on the day prior to their earnings report.We implemented this strategy on ATW last week and we made 3% a day.
Our next candidate was- ITMN. We shorted it prior to its earnings announcement on Thursday, after the close.
The company reported missing earnings and the stock lost almost 6%. For any of you who have not yet closed the short (bought to cover), this is the time to do so.We got ourselves another winner overnight.