What is a company earnings anouncement?Company earnings are something everyone who trades stocks should be aware of. When a company announces its earning there is a lot of speculation in the air. People all have different opinions on what the company will announce. Are they up from last season, are they down,by how mush?It is for this reason that earning can make a stock extremely volatile. Sometimes a stock can have huge swings one way or another. It is always possible that a stock trading at $45 before earning are announced to be trading at $55 after earning are announced. If you were short that company at the time that could have hurt. Although earnings can lead to huge swings, both up and down, sometimes they don’t. Sometimes a company earnings announcement will do absolutely nothing to a stock. That $45 may be trading at $45 after earning. We don’t know. That is why Trading with companies earning is so risky. The majority of companies announce their earning at the same time. The time in which most companies are announcing their earnings is called the earning season. It happens once every three months. During this time the market can be volatile and be plagued with huge movements from different companies. During this season different traders will have different strategies. Some traders who own stocks that are making good money will hold their stocks thru earnings season. These traders like their stocks and are not willing to let it go just because it’s earning season is coming up. Besides good stocks have good earnings. You are more likely to see a good stock go up after earning than you are to see it go down. Other anticipatory traders will actually try to predict the earning. These traders will often either buy a call or put if they believe a stock is going one way or another, or do a strangle or a straddle if they are looking for a big move. This is the riskiest form of investing. Other traders will just not trade earning. While the vast majority of stocks will announce earnings during earnings season, some do not. These stocks are likely to have no big surprises. Indexes such as the SPY and the QQQQ will also not be affected by earnings because they are composed of many different stocks. It is really just best for every individual to find their own strategy at earnings season. Just be careful no matter what you try. 
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