The author observes a recurring price pattern: HOOD rallies 10-20% in the days/weeks leading up to each earnings report over the last two years. If the pattern holds, buying calls just before the next earnings release could capture that expected run-up. Trade based on a short-term, historical repeat – buy calls ahead of earnings to sell before the post-earnings "tank." Pattern failure (e.g., early run-up already priced in, or negative earnings surprise), gamma/theta decay on options, or unforeseen market events.
The author observes a recurring price pattern: HOOD rallies 10-20% in the days/weeks leading up to each earnings report over the last two years. If the pattern holds, buying calls just before the next earnings release could capture that expected run-up. Trade based on a short-term, historical repeat – buy calls ahead of earnings to sell before the post-earnings "tank." Pattern failure (e.g., early run-up already priced in, or negative earnings surprise), gamma/theta decay on options, or unforeseen market events.