Why earnings trades need a separate checklist
Earnings trades combine time pressure, volatility shifts, and binary catalysts. A dedicated checklist reduces reactive decisions and makes it easier to compare event trades in your performance review.
Pre-event checklist
- Event timing confirmed. Record the exact earnings date and whether the announcement is before market open or after close.
- Setup type chosen. State if this is directional, volatility-selling, or volatility-buying so review context is clear.
- Max loss and size defined. Set the same risk limits you use in your risk plan checklist.
- Implied move documented. Record the market-implied move so your post-event review has a reference point.
- Exit trigger selected. Decide in advance whether you will exit at a price target, time window, or volatility contraction level.
- Contingency noted. Write one rule for adverse movement so you do not improvise under pressure.
Post-event review checklist
- Outcome vs plan compared. Note where actual movement differed from your plan.
- Execution quality scored. Record whether entry and exit timing followed your predefined triggers.
- Volatility behavior logged. Document whether implied volatility expanded or contracted as expected.
- Tag added for analysis. Use a consistent earnings tag so events are easy to filter later in your journal.
- Process lesson captured. Write one short lesson for your next event setup.
Suggested journal fields
| Field | Why it helps | Example |
|---|---|---|
| Earnings timestamp | Preserves event context | After close, Tuesday |
| Setup category | Makes comparisons meaningful | Defined-risk directional |
| Implied move | Baseline for expectations | Expected move +/-4.8% |
| Planned exit | Improves discipline | Exit by first 90 minutes after open |
| Post-event note | Captures repeatable lessons | Entry timing was late versus plan |
Process tip: Keep event notes compact and structured. One line before earnings and one line after earnings is usually enough for high-quality review data.
Related guides
Use this checklist with the trade entry checklist, trade adjustment checklist, and expiration week checklist.
FAQ
Should I track implied move on every earnings trade?
Yes. It gives you a consistent expectation baseline, even when the trade idea is simple.
Do I need separate tags for earnings winners and losers?
A single earnings tag is enough at first. You can add outcome sub-tags later if review volume grows.