ANALYSIS & EDUCATIONAL:

At the start of earnings season, this is a reminder to be responsible with your hard earned cash and gains. De risk by trimming positions, size for 0/ use appropriate size in your pre earnings play. Here's what institutions do with earnings:

Firstly, institutions will often trim positions before earnigns as I mentioned, as earnigns are uncertain. Normally, before earnigns season, institutions will do some kind of cash raise.

Remember that cash raise is literally one of the best forms of hedging. You can then look for opportunities in the market. E.g. Last week, $ASML Holding(ASML.US)$ fell to multi month low. If you trimmed your ASML position, or if you dont hold ASML, then other positions, heading into earnings, you can buy at these discounts.

2. Institutions generally don't buy on earnigns predictions. Does this mean you shouldn't? I'm not saying that. What I am saying though, is understand that pure earnings plays are a gamble. You dont really know FOR SURE if $Alphabet-A(GOOGL.US)$ will smash it out the park or not, and evne if they do whether the market will receive it well. As such, size small, and if you buy options, buy longer durations so that you dont get killed on weekly calls. Give yourself a damn chance that if the earnings dont go exactly as you planned, you can still get out of the position at Break even. To be honest, you should just buy common shares rather than options. Then furthermore, buy companies that you actually believe in. no point going long on $Roblox(RBLX.US)$ earnings if you dont like ROblox at all, just because they happen to be reporting. No. buy the companies that if they sell off, you dont mind holding them still, because you know that in 6m theyll be back.

3. Look at prior earnings performance, but understand that this is not a fool proof strategy. just ebcause the earnings popped and beat on the last 4 earnings, doesnt mean it will this time. But it is a good sign.

4. INSTITUTIONS GENERALLY DONT GUESS THE EARNINGS, BUT THEY REACT TO THE EARNINGS.

To do so, what they do is they wait for a sell off, then watch the MONTHLY AND WEEKLY EMas for entries. They will watch for pullback for instance to 21Weekly EMA, and buy there for bounce. Or the 9monthly EMA and try to buy there for bounce. But again, in companies that they believe in.

look here for example. This was ASML. last week they delivered shitty earnings and crashed. But here you see, it PERFECTLY held the 9Month EMA. So watch these weekly and monthly time frames with the key EMA's plotted and watch for pullbacks to these points on high quality names.