What's going on guys welcome back to the channel thanks again for tuning in today, we're covering a highly requested video, how much a stock is going to move on their earnings announcement if you're not familiar every quarter publicly traded companies will release an earnings report, and this Is going to show how profitable or how much money the company has generated for the quarter now when they release these reports, the stock generally makes a really big move and it can be very volatile and it can be hard to judge just how big that move Is going to be, if you don't know what you're looking for so in this video we're going to be showing you how you can use the options chain on td, ameritrade, robinhood and weeble in order to predict how much stocks are going to move during their earnings Report and again, the really great thing is this works on any platform. You just have to be able to look at the options chain, so we're going to go through td, ameritrade, robinhood and weeble, so the first one we have up on the screen. This is td. Ameritrade, this is what the inside of the thinkorswim option chain looks like before we go further.

What i'm going to do here is i'm going to pull up robin hood, which should be? Is it this one? Where are you at there? It is so this is the robin hood option chain, as you can see, it's not quite as intuitive of stink or swim, but that's. Okay, that's really robin hood's. Whole motto is simplistic and very basic, which is completely fine. The next one we're going to look at here is weeble weeble, as you can see, it's very similar to that of thinkorswim.

It's significantly more intuitive, more advanced and more complex than that of robin hood. So if you're, a beginner and you're really just getting your feet wet, then something like robinhood might be better, but i wholeheartedly feel you should probably just avoid that in the first place and just jump into using something like weibull, the platform is free. There's no commission. There's also a link in the description if you haven't already joined them, to join them and get a couple free stocks when you sign up and deposit a little bit of money.

So i would highly suggest you just jump on and use this platform and really just start learning on a more intuitive platform, because it's really just the way to go. So what we're going to do now is we're going to show you how you can calculate the move of any stock. That's going to report earnings! What we're first going to do is we're going to jump back to the think or swim think or swim one. One.

Second, so here's the thinkorswim platform: this is the option chain. This video might be slightly hard to follow because i'm making it on a friday and since there's really no companies reporting earnings after hours today, it makes this video slightly more challenging to follow along with, but i'm going to do my best to make sure you're not Confused so whenever you're following a company, so let's say next week: you're following any company, that's going to report earnings! What you do is you go into the option chain of thinkorswim, robinhood or weeble, or any of the platforms that you're using now? What you're going to do is you're going to open up the earliest expiring option chain. So, in this case today is august 6. It's a friday which means that these options here for apple stock are going to expire.

Today, the august 6 option chain will be gone after today come monday morning. The new option chain, in line earliest expiring options chain, would be august. 13.. Okay.

So this is the new options chain that you would use for next week to predict any earnings movement for any stock you're looking at so the way that you do. That is that, at the end of the day, before market close couple minutes before, if you're looking at apple facebook, nvidia google doesn't matter, you look at the earliest expiring option chain a few minutes before market closed. On the day, the company will report its earnings from there you're going to go and you're going to get the at the money call which, in this case, is on the left side and you're going to get the at the money put on think or swim. It will be the right side.

Okay, you will add the cost of both of those options together. Whatever that comes out to is the implied move that the stock is expecting to make on its earnings announcement so real quickly, i'm going to pull this calculator up. So, let's just say, for example, that today was the day that apple was going to report earnings after hours. What we would do is we would take this call, which is priced at 1.99, and i'm just using the ask side.

Okay, then, we would add that to the put which over here is a dollar forty, seven that comes out to a total of three dollars and forty six cents from there. You could expect that apple once they report their earnings should move a value of 3.46 from wherever it kind of is once the market closes. Okay, there is an easier way to do this when you're using thinkorswim, rather than having to add the call and the put to figure out the value you could simply look to the upper right hand corner. If you follow my cursor and you will see right here - 3 36, so what they're saying is the implied move for apple would be 3.36, whereas my calculation was 3.46 and the reason there's a little bit of a difference is because i added the ask of the Call and the ask of the put together so i'm going top dollar on those options to get my value, whereas the implied move here is probably just calculating from about the middle of the spread on the call to the middle of the spread.

On the put, therefore, creating a little bit less of a value that i came up with all right now, what we're going to do is we're going to jump back over to um robinhood, okay, so we're looking at apple. This is the same thing. We're looking at the august 13th expiration, okay, the difference here with robin hood. Is they don't show you the calls and the puts side by side? You actually have to toggle this switch up here to get to a call or to a put so, for example, in this instance, you can see here.

The call for apple 145 august is at a cost of 197.. If you look here on td ameritrade the cost for a call on td ameritrade, there is 198., so it probably just hasn't updated here on td ameritrade, but that's or hasn't updated. Yet on robinhood, but that's okay. So again between robinhood and td ameritrade.

You can see the calls are pretty much the same price from there. You would go over to the put and you would figure out the put is priced at a dollar forty six, so i don't see here on robinhood that it gives you the implied move that td ameritrade does in the upper right hand corner. So this is when you would use the trick of adding together the at the money call and the at the money put if you're a user of robinhood to get the implied move for the earnings announcement on whatever stock. It is you're watching all right now that we're good on robin hood, we're going to pop on over to weeble so again here on weeble, i'm not sure if it shows the implied move anywhere.

Here again, i don't use weibull as often as i use td ameritrade. So if there is a section where it gives the implied move, i might just not be seeing it and i'm sorry if i'm missing it, that's okay! If, in the event it does not exist, you would still go with the same process as you did, while using robinhood, you would again take the hold on this is august 6. So we want to change this to august 13th, just because that's how we've been working the date that we've been working with throughout this video so again with apple here on weeble, you would go to the at the money call and you would go to the at The money put, you would add those both together and whatever that value comes up, as that would be the expected move for apple at market close when they report earnings. I wish there was more that i could show you if there were companies that reported earnings tonight.

I could map out all the levels for you and then you could look at them yourself later after the company's report. But again this is friday, which means there's no reports happening. So what we will do is we will go. Look back at the last example that i have done with this with traders on youtube just a couple days ago, so i'm going to minimize weibull.

We are going to get out of the option chain here and we are going to go and look at the stock s. P c e, all right, so we're going to pop on over to s p spce here all right and we're going to go back on a 180 day chart all right. So if you use td ameritrade, whenever you see this little blue circle and well the blue and the red circle, that is there to let you know the company's reporting earnings right, so anytime, you're using teeth, ameritrade and you see a little blue and a little red Circle, next to each other, that's the date at which that stock or company will report their earnings announcement. Okay.

So yesterday before the company spce reported its earnings, you can see. I have a bunch of green arrows here in a couple red lines. So yesterday, before market closed on spce, what we did in a live stream at about 11 in the morning was we taught people this strategy and the strategy was to add up the at the money put in the at the money. Call to get a value to figure out how much the stock should move when they report, so the value that we came up with for spce now granted.

This was at 11 in the morning and, as i mentioned, you want to do this right at about market. Close so the two levels we have on the chart were probably slightly off because we did it so early on in the day, as opposed to later in the day right before market closed, when it probably makes most sense to look at that. Okay. So now what you can see is we have the red line on the top and the red line on the bottom, so at 11 am after we added the at the money put at the money call for the stock spce.

I forgot the value that we came up with, but that value we came up with created a resistance up at the price of 34.29 and a support down at the price of 2912.. So whatever that implied move was or that calculation of the put in the call that allowed us to put a support and resistance at these two prices, you will then see if we just kind of go and look at an intraday chart, you will notice that the Earnings announcement yesterday after hours, wait before i go further. We did the calculation at about here. So an spce at about 11 o'clock was trading here.

That's when we added the put and the call together and that's what created this red line up here and this red line down here. So whenever you get those two red lines like i just suggested. That's where you can expect the stock is going to move in. After hours on their earnings announcement again, just as a recap - maybe i can make it slightly more clear when we added the at the money put in the call, it gave us a value so at market close whatever that value, is you go up to so? Let's say spce closed here, which it did at 3158 and the move was expected to be three dollars.

You would then go all the way up to 30. Would i say 31.50 and three dollars. So you go all the way up to 34.50, which was like about there and you would put a line all right and then you would go all the way down from when it closed. You say: okay, it can move three dollars.

The price is 31.50. Let's go down three dollars that brings us down to you, know whatever, basically 28.50 or whatever. It is. Okay, so from there you'd mark off your two lines and that's where you can expect that the stock is going to move to an after hours trading.

Now i wish i was smart enough to tell you guys exactly how you can determine which way it will move first, but i just don't know how to do that, but if i ever figure it out to be sure i will let you guys know so. This is usually the way that i go about using this strategy on the day that the company announces earnings you go into the option chain, do the whole put call thing or you just look at the implied move figure out what that value is come back to The stock chart add a support and a resistance based on that value that you've calculated then from there. What i typically do is i: when trading these earnings move, i don't try to catch the first big initial move. I just generally wait for the stock to move to what the expected move is supposed to be, and then either trade the market on a short bearish.

If it goes up or i trade it long on a bounce if it sells down now a lot of times. That's the case: it's going to happen. The market will move to one of your price points and then it will bounce in the event that it does not bounce and it keeps going that generally means that the earnings announcement was worse than expected or better than expected to the point. The market is willing to continue selling it down and or to continue buying it up through that expected move.

Let me repeat that when you put those values on your chart, if the stock goes further than it on the downside or the upside, that generally means the earnings report was way better than anyone expected. Hence why the price goes further than the implied volatile move. That was expected if that makes sense, go ahead and smash the like button hit the subscribe button. That's all we have for you in this video.

I do appreciate you guys tuning in if this is your first time tuning into the channel. Just note we go live every single day, monday through friday, from about 8 a.m, to 11 a.m, through market trading hours to help you give you guys, real-time market analysis every single day, so that being said, i'll catch you guys in the next video. I appreciate the support.