Firstly during ER the stock becomes very volatile before and after. It can take place days or even weeks in between.
What do we do then?
Simply put into scenarios.
1. Do not pick DNP to stay away from volatility. If you do not have experience then I suggest stay away.
2. Trade it. Only for the more experienced hands. Which direction will it go? I suggest you look at 2 things. Volume and price action. As things will gain momentum very fast, it is hard to predict. Hence when you see the momentum coming in, you need to go in and go out fast. Thats the only way to do it.
Conceptually easy but execution is always hard, just like all trading strategies and moves.
Any thoughts? Just basic sharing and welcome more experience traders to share. Good and bad experiences too!
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