What Happened With UAL Earnings?

Yesterday, we created a game plan around trading United Airline’s earnings (UAL).

We said, if UAL gapped up, then probabilities suggest that UAL tends to continue in the same direction for an average of ~$2.01, or to the nearest V-Score standard deviation at $90.33.

UAL did just that today. We gapped up, filled the (small) gap first, and then continued to trend towards $90.60, well above our first target.

Discussion for UAL is available in yesterday’s post, here.

Below are some interesting statistics around earnings (using 2-yrs worth of earnings data) for tomorrow:

  • CSX Transport (CSX) – Gap N Go 75% of the time on earnings beat
  • International Business Machines (IBM) – Gap N Go 87.5% of the time
  • Netflix (NFLX) – Gap N Go 62.5% of the time
  • Crown Holdings (CCK) – Fills its gaps (Bearish preference) 87.5% of the time
  • Crown Castle (CCI) – Gaps down and fills its gap 75% of the time on earnings beat

Trade Plan & V-Score Targets

As of writing this post at 5:30pm PT, the following trades look as though they will trigger:

  • CSX – Gap N Go Bullish on Earnings Beat
  • IBM – Gap N Go Bearish on Earnings Miss
  • NFLX – Gap N Go Bullish on Earnings Beat

Below are some price targets, based on if the pattern that tends to happen repeats itself, and we get a move in the direction towards our bias.

The price targets are derived using the closest standard deviation, with the V-Score indicator.

TickerPreferenceBiasEarningsAvg $ MoveNearest SDNearest +/-1 SD
UALGap N GoBullish $            2.01  $        90.33  $                  91.29
UALGap N GoBearish $            5.09  $        86.18  $                  82.02
ASMLGap N GoBullish $            3.80  $      270.29  – 
CSXGap N GoBullishBeat $            1.85  $        70.51  $                  72.23
IBMGap N GoBullish $            3.48  $      153.39  $               163.95
IBMGap N GoBearish $            2.66  $      138.49  $               131.68
NFLXGap N GoBullish $            4.43  $      292.94  $               319.41
NFLXGap N GoBearish $            3.20  $      245.47  $               207.62
CCKGap Fills –  –  – 
CCIGap Down FillBullishBeat $      134.57  $               153.13

Volatility Box Trade Report

We had a total of 0 trades that set up today, for a net P/L of $0.

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