Why Tom’s Option Tools is an Invaluable Software for Analyzing Options Trades on Earnings

Tom Gentile

Posted in
Education

By: Tom Gentile
March 1st, 2024

5 mins read

Back in January I authored an article showing a way to anticipate the potential price move of a stock on their earnings announcement based on what it seems market makers anticipate for a stock move post their earnings announcement.

The process I educated everyone on was to take the next month At-the-Money stoke priced options, the call and the put, add the cost of each and the combined amount is what one can deem the expected price point move that would happen after the company announces earnings.

The example shown at the time was Intel Corporation, (NASDAQ: INTC).

I then went on to teach once one has the price point expectation one could consider a Straddle option trade. The reason being though one can do the math to ascertain a potential price amount move, one doesn’t know which direction higher or lower it will go.

The stock was trading at or near $49.62.

 I looked at and posted the combined cost for the $50 Call and Put option for a February 16, 2024, option expiration.

The cost at the time of writing that education was $5.02 or $502 per contract.

It was stated then to be profitable the stock needed to pop or drop and move that amount or more In the Money on either the call side or put side. If this price move didn’t happen right away, the anticipation was that in a short amount of time after the announcement is that it would.

In the next series of images, I show you the chart of INTC at the time, which was the day before the earnings were announced.

Under the chart I show the options data, such as the pricing for the Feb. 16, 2024, $50 Straddle.

The next two images show the price move the day after the earnings were announced accompanied by the option pricing data after that price move.

INTC Closing Price Before Earnings
INTC Closing Price Before Earnings
INTC, Entry Debit Callout
INTC, Entry Debit Callout

These images were for INTC the day before the earnings.

Here are the images, chart, and options data pricing the day after the earnings announcement. The numbers prior to the announcement indicated a potential $5-point move was anticipated.

Image 14
Image 15

INTC actually dropped and closed down $5.37-points the day after showing that in this case the anticipated price move was met.

Looking at the option pricing you cans see a profit was possible.

The Feb 16 $50 Straddle prior to announcement is shown at the $5.02 or $502 per contract and that same straddle’s closing price the day after shows a profit potential of $148 per contract or a percentage Return on Investment (ROI) of 29.5%. In my world a 25.9% ROI for a day’s work is rather good!

Mastery On Demand

What I showed is one option strategy to be considered around earnings. It is what I call a 24-Hr Earnings Strategy.

It is one of the many strategies I teach in one of my Mastery Courses.

A Mastery Course is a 6-week course done online where I teach a minimum 90-minutes class, with a slide deck, use of the tools (www.tomsoptiontools.com) and a follow up Monday 1-hr live session where we use the software to look up / search with the tools any potential trade candidates based on the education received in the live lesson session.

I am taking a year off from doing the live Mastery sessions in 2024, but what I have seen is a demand for those Mastery sessions.

Many people have asked to pay for the latest recordings of those Mastery session, which spurred on the idea to create an opportunity for those that took the class and lost their recordings.

Many people said they were trying to put their money together to attend the live session(s) this year, but since we aren’t running them live for 2024, (to give my instructors and myself a respite for a year) people have asked if they can at least get the recordings.

That is one of the reasons my Mastery On Demand (MOD) program was born. https://learning.tomstradingroom.com/

That’s right. Everyone reading this has the opportunity to click on my link for the Mastery On Demand program and jump on board with it.

With me and my team putting Mastery courses together we have 6 of them total. You can see when you click the link you can sign up for one or all 6.

My earnings strategy that teaches this strategy in one of my week’s lesson plans is in the mastery called System Mastery.

If you want to dive deeper into even more option trading strategies around earnings one of my instructors Mike Wade teaches a number of them and has multiple scanning button in my tools one can use to isolate high probability option trades with minimal risk. This mastery course is called simply Earnings Mastery.

When one enrolls for one or more, I bonus in 30-free days of software access, along with the opportunity to attend my Monday Live sessions where my team and I discuss current market conditions, teach about software navigation and how to use it to look for option trading opportunities.

Please click on the link https://learning.tomstradingroom.com/ and read up on this invaluable opportunity to learn from my team and I beginning, intermediate, to advanced option strategies for generating profits trading options.

Tom Gentile
C1P: Chief 1-Percenter

App: Toms Option Tools

Toms Option Tools scan the markets for bullish and bearish trade opportunities using our proprietary scans and strategy algorithms. TTR Darknet finds bullish entries based on triple stack channel collisions. Money Calendar identifies seasonal patterns with at least 90% accuracy looking back 10 years. Weekly Cash Clock finds short term opportunities that last a week on average. Microcurrency Trader applies Darknet technology and moving averages to cryptocurrencies. Velocity Trader utilizes volume spike and Velocity indicators on custom stock lists. Quantum Scripts scans the markets for momentum acceleration signals and employs Quantum noise filters. Optimal Trader finds directional pre-earnings opportunities that are optimized for entry date, stock movement, and volatility surge. My Trades tracks the profit/loss of your trades, displays stock charts and risk graphs, creates new trades, and edits existing trades. Morning Report provides top 10 option rankings in 6 categories each day.


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You must be aware of the risks and be willing to accept them in order to invest in the stock and options market. Do not trade with money you cannot afford to lose.

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Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been actually executed, the results may have under or overcompensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with hindsight.

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