Although I don’t get as involved, I trade some tickers after earnings based on CML backtests. The historical patterns after earnings are not consistent across stocks. Each one seems to have a mind of its own. Also, the returns aren’t quite as dramatic or consistent as pre-earnings. That said, there is money to be made here.

If you’re interested, I highly recommend subscribing to CMLViz (https://tm4.cmlviz.com) so you can do your own backtesting. There are so many variables and only you know what you’re comfortable trading. The recommended designs include straddles, strangles, ICs, calendars, debit/credit spreads, and calls/puts.

I’m happy to share my post-ER spreadsheet. I currently have positions in GOOGL, CHKP, GRUB, LRCX, and SHOP. Closed PYPL for a nice profit. There are lots more stocks to consider but I’m going to be very selective. It’s been tough to profit this round.

My primary focus is on longer-term fuzzies, ratios, flies and SPX short-term trades so earnings trades are on the sideline.
#post-earnings

Bot LRCX Aug17 200c @ 1.92
After LRCX moves up 5% in one day in response to earnings, LRCX tends to continue moving up over the next few weeks. LRCX is also forming a daily squeeze which makes this trade even more compelling. http://tm.cmlviz.com/index.php?share_key=20180727180410_UAlqLy1UC9kr46Au

#post-earnings