How to Avoid Trading Around Earnings Announcements

Earnings announcements can create a lot of volatility and uncertainty in individual stocks. You can avoid the event with this decision recipe.
Kirk Du Plessis
Jun 21, 2021

Earnings announcements bring a lot of volatility and unexpected price movement. Earnings season is busy, and it’s tough to keep the dates organized for a portfolio of securities. You may want to avoid or target new trades before the event. Before automation, you had to track earnings dates and react manually. Now you can offload the process onto the bots.

The bots are smart enough to know when a company announces earnings. So, you can precede any decision action with this recipe to tailor your strategy to the event. Simply add the decision recipe to check the earnings date and use it as a filter to enter or exit a trade.

For example, you can avoid the announcement altogether by only opening a position far enough in the future that you don’t hold the position around the event. If an earnings announcement is 40 days away, and you set the options expiration date for 30 days, you don’t have to worry about the uncertainty leading up to the earnings date.

You can also use the recipe to close a position before the announcement automatically. Simply add a closing position action if an earnings announcement is approaching. For example, if earnings is less than five days away, you can tell the bot to exit the trade.

Calendar filters demonstrate the power of bots and automation. Trading is hard enough. Backtesting ideas. Scanning for opportunities. Executing trades. It is a time-consuming process. Now you can automate certain mundane tasks to reduce your workload and keep you focused on higher-level projects.

Earnings announcements bring a lot of volatility and unexpected price movement. Earnings season is busy, and it’s tough to keep the dates organized for a portfolio of securities. You may want to avoid or target new trades before the event. Before automation, you had to track earnings dates and react manually. Now you can offload the process onto the bots.

The bots are smart enough to know when a company announces earnings. So, you can precede any decision action with this recipe to tailor your strategy to the event. Simply add the decision recipe to check the earnings date and use it as a filter to enter or exit a trade.

For example, you can avoid the announcement altogether by only opening a position far enough in the future that you don’t hold the position around the event. If an earnings announcement is 40 days away, and you set the options expiration date for 30 days, you don’t have to worry about the uncertainty leading up to the earnings date.

You can also use the recipe to close a position before the announcement automatically. Simply add a closing position action if an earnings announcement is approaching. For example, if earnings is less than five days away, you can tell the bot to exit the trade.

Calendar filters demonstrate the power of bots and automation. Trading is hard enough. Backtesting ideas. Scanning for opportunities. Executing trades. It is a time-consuming process. Now you can automate certain mundane tasks to reduce your workload and keep you focused on higher-level projects.

Trade smarter with automation