If/When a stock runs up into earnings, the long calls not only go up in value usually in line with the stock, but as IV increases into earnings, these long calls will often gain value at a faster rate than the underlying stock.
This bot is designed to enter long call positions on stocks that I have identified as having historical run-ups in the two weeks prior to earnings. I would identify this pattern by simply looking at stock charts and looking at a stocks historical activity prior to earnings and when I find some that have had historical run ups - I add those symbols to my automations.
I could clone this bot and make a number of them to each handle 5 symbols, or in my case, I just come in and swap out the symbols every 2-3 weeks - a case could be made for doing it either way.
This is not technically an "Earnings" play because it does not hold the stock through the earnings report, it buys stock X (user defined) days prior to earnings and then sells the stock the day before earnings. This bot is designed to enter long call positions on stocks that I have identified as having historical run-ups in the two weeks prior to earnings. I would identify this pattern by simply looking at stock charts and looking at a stocks historical activity prior to earnings and when I find some that have had historical run ups - I add those symbols to my automations.
The trader should look through tickers that might be having earnings in the next few weeks and then plug in the symbols that they have seen this run-up occur on in the past and then let it run through that cycle.
