Price Behavior After Earnings Announcements

Find out if the price of an underlying continues to run after a large move around an earnings announcement or if it has the tendency to revert! See the latest trading videos: http://ow.ly/E7JOF We are often asked that after large moves due to earnings announcements, does the price of the underlying tend to continue in the same direction or do we see a reversion to the pre earnings price? Today, Tom Sosnoff and Tony Battista look at a huge answer in an attempt to answer this question. The guys take a look at all of the tastytrade stocks and go back to 2003, when data is available. They find out that if an underlying opens higher it will have a tendency to continue higher. However if an underlying opens lower, there is a tendency for the price to revert closer to the pre earnings price. The also show how this closely relates to a previous study on Initial Public Offerings and how they found similar results there! ======== tastytrade.com ======== Finally a financial network for traders, built by traders. Hosted by Tom Sosnoff and Tony Battista tastytrade is a real financial network with 8 hours of live programming five days a week during market hours. Tune in and learn how to trade options successfully and make the most of your investments! http://goo.gl/EaF69C Subscribe to our YouTube channel: http://goo.gl/Szl24S Watch tastytrade LIVE daily Monday-Friday 7am-3pmCT: http://goo.gl/EaF69C Download our mobile app, Bob the Trader: http://goo.gl/zgIyco Follow tastytrade on Twitter: https://twitter.com/tastytrade Become a fan of tastytrade on Facebook: https://www.facebook.com/tastytrade Follow tastytrade on LinkedIn: http://www.linkedin.com/company/tastytrade Follow tastytrade on Instagram: http://instagram.com/tastytrade Follow tastytrade on Pinterest: http://www.pinterest.com/tastytrade/

Comments

1. This is great information especially when it comes to IPOs! Wouldn't be great if you could do this analysis again for 2015 and the first 3 months of 2016? It would be interesting to see if the stats change from year to year and quarter to quarter. Here's a suggestion: have a website page where a person can enter a date range to generate the stats.
2. What you guys do amazes me. Excellent research. Admirable purpose driven organization. Thank you.
3. Your channel is getting better and better. Good job