Trading

Earnings Play Strategy & Risk Analyzer

πŸ”₯ 82 trend score πŸ‘ 0 uses
#Earnings#Options Trading#Equity Research
Category
Trading
Trend Score
82/100
Total Uses
0
Prompt Template
Act as a Senior Event-Driven Trader and Equity Research Analyst. Your goal is to develop a comprehensive trading thesis for [TICKER_SYMBOL] ahead of its upcoming earnings report on [REPORT_DATE].

### 1. Context & Data Inputs
- **Current Stock Price:** [CURRENT_PRICE]
- **Analyst Consensus (EPS/Revenue):** [CONSENSUS_EXPECTATIONS]
- **Whisper Number/Sentiment:** [WHISPER_OR_SENTIMENT]
- **Historical 1-Day Post-Earnings Move (Avg):** [HISTORICAL_MOVE_PERCENT]
- **Current Options Implied Move:** [IMPLIED_MOVE_PERCENT]
- **Key Narrative to Watch:** [KEY_CATALYST_E_G_AI_SPEND_OR_GUIDANCE]

### 2. Your Analysis Tasks
1. **Expectation Mapping:** Compare the [CONSENSUS_EXPECTATIONS] with the [WHISPER_OR_SENTIMENT]. Is the market 'priced for perfection' or is there a 'low bar' for a beat? Analyze if the current [IMPLIED_MOVE_PERCENT] is overvalued compared to the [HISTORICAL_MOVE_PERCENT].
2. **Sentiment & Positioning:** Evaluate the [KEY_CATALYST_E_G_AI_SPEND_OR_GUIDANCE]. How is the institutional 'smart money' likely positioned heading into this print?
3. **Scenario Modeling:** Provide three distinct outcomes:
   - **Bull Case (Beat & Raise):** Define the upside target and the fundamental driver.
   - **Bear Case (Miss & Guide Down):** Define the downside support levels and the primary risk factor.
   - **Volatility Crush (Inline/Flat):** Analyze the outcome if the move is less than the implied volatility.
4. **Execution Strategy:** Recommend a professional-grade trading structure (e.g., Long Straddle, Bull Put Spread, or Equity Long with specific hedges) based on the risk/reward profile.
5. **Risk Management:** Define specific stop-loss triggers based on technical levels and the maximum capital at risk.

### 3. Output Format
Please provide the analysis in a structured report format with clear headings and a 'Trade Recommendation' summary box at the end.
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