Trading Google and Verizon Post Earnings

Alphabet, Google's parent company, had a blow out 2nd quarter earnings report. The stock shot up post market to 1272 and opened near there on Tuesday morning. It wasn't necessarily a buy there. Based on the sharp movement downwards, it indicated that it would go down. The best bet would be to buy a Put option when it comes back near where it opened which happened around 9:40am. If you bought that, you could hold it for 20 minutes and sell it for a huge profit at 10am.

At 10am you could have bought Call options on GOOGL and held those for 20 minutes and sold those for a huge profit when it returned to 1271 and then be done for the day. Below show the same chart broken down by 1 minute intervals. The up and down movement was too crazy for the rest of the day even though it trended all the way down to 1249 before turning back up.

Verizon reported great earnings before the market opened Tuesday morning. It opened higher, but fell hard below Monday's close. This was a buying opportunity because it was due to go back up near where it opened. You could have bought Call Options with August 10 expiration for around 20 cents and turn around and sold them for 50 cents by the end of the day. If you did that with 100, you would be quite happy.

I hope this helps as this is the first blog where I broke down how to trade it.