Earnings season always brings volatility, and that means opportunity. This week, I’ve lined up a handful of trades on stocks set to make big moves. Some have already reported, like Robinhood (HOOD), which I’m avoiding now that the initial reaction is out of the way.
Others are still on deck, and I’m positioning accordingly.
Coinbase (COIN): A High-Volatility Setup
Coinbase reports earnings after the close, and market makers are expecting a $27 move. That puts the stock in play for a big swing, and I’ve set up a trade targeting a move toward $300 — the stock was already up $18 this morning to $293 a share.
I structured it with a debit spread to keep risk contained, paying $1.13 for a 275/277.50 call spread. If COIN rips higher after earnings, this trade has solid potential.
Datadog (DDOG): Waiting for the Right Entry
Datadog has been consolidating for weeks, and earnings could be the catalyst for a breakout. Historically, the stock moves about 9% after reporting — it was down 10% this morning — with an expected move of $13 to $15 this time.
I priced out a few trades but didn’t like the risk-reward setup.
The premiums felt a little too rich so for now, I’m sitting on the sidelines, but if we get a cleaner setup post-earnings, I may take a shot.
Tesla (TSLA) and Nvidia (NVDA): Managing Open Positions
I’ve been trading Tesla through ratio spreads and shares, working through some drawdowns but staying positioned for a rebound. I also have a trade running in Nvidia — a 126/130 ratio spread that still has time to play out.
If the stock moves higher, I’ll take profits. If not, I may adjust or roll.
Alibaba (BABA) and Baidu (BIDU): Riding the China Rebound
Alibaba has been on fire, running nearly 50% off its lows. Baidu is still in consolidation, but I have a target up around $157 if it can break out.
These China stocks have been under pressure for months, and now that momentum is shifting, I’m holding onto my positions.
What I’m Avoiding
I looked at Reddit (RDDT) and Robinhood before earnings, but both stocks had already made big volatility moves ahead of their reports. That made the risk-reward unappealing.
I’m also avoiding Datadog for now — the setup isn’t quite right, and I’d rather wait for a better entry.
With inflation data shaking up the market and rates still in focus, earnings season is offering plenty of opportunities. The key is managing risk, taking profits where they’re available, and staying positioned for the next move.
I’ll see you in the markets.
Chris Pulver
Chris Pulver Trading
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*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.
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