Traders who want to trade direction wait for the earnings season to make money trading stocks that open gap up or down.
Usually when a stock gaps up or down they continue the trend for quite some time. Traders want to trade that direction either through equities, futures or options.
One of the best ways to trade earning season is to trade gap up or down. To do that a trader must enter the trade one day before the stock’s earnings are out to take benefit or gap up or down.
There are some stocks with a history or opening after the result season with a huge gap or down.