It happens fast, sometimes. The event comes and the stock price jumps in the afterhours. You might think that you missed the trade - but you didn't.
There are many different ways to play this situation.
Here's a frequent pattern of an evening, aftermarket event on a stock:
Synnex shares (pictured above) delivered an 11% gain over two days following the announcement of a large buyback program for those willing to be patient with the trade.
SNX announced their buyback pre-market on the 10th. Shares rose +8% pre-market and then began giving up gains at the market open, falling from 108 to 102, which created a great entry point for those who did not give up so quickly on the stock (underlined in black).
Then, over the next 2 days, the stock continued rising from 102 to 111.
Options traders were rewarded especially well for their patience and savvy. Running puts at the open would have yielded triple digit returns as did buying the dip and running calls.
These opportunities are there when you're aware of the event and it's impact. That's a big part of what LevelFields help with.
Here is another example of an event that happened at 630am pre-market 3/12/24 to $BZ. Note there's some movement between the time of the event and our alert (655am), but not much. There's also some time between alert and the open that results in gains. But the major gains happen in the intraday trading hours.
Specifically, make note of the multiple peaks the stock hits as this is typical - to have a run up then a selloff then a run up. The stock is in play the whole time. You can trade it or hold it. The selloff around 945 brought the stock back down to the pre-alert price, presenting the same entry opportunity 3 hours after the alert. Even if the alert arrived later, you would not "miss the trade." Knowing the event happened and the direction of it is everything.
Also keep in mind: these events are markers of a company's successes and failures. There is a longer term play than a day, usually. It's hard to know how it will react past the 1 day mark, but quality companies with strong financials that is generating bullish events is likely to keep on prospering.
LevelFields is a research tool that is for long and short term investing. Sure, the quick gains are great. But often the best gains come from holding the stock longer term or for swing trades.
Join LevelFields now to be the first to know about events that affect stock prices and uncover unique investment opportunities. Choose from events, view price reactions, and set event alerts with our AI-powered platform.
Don't miss out on daily opportunities from 6,300 companies monitored 24/7. Act on facts, not opinions, and let LevelFields help you become a better trader.