Earning Charts Earning Moves Post Earning Drift

Earnings - Historical Chart

           
97.14 -0.30(-0.31%)11/21/2024
Merck & Co Inc (MRK)
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Opening Gap (%)

The % change in price from the close before earnings is released to the open immediately after earnings is released. If earnings is Tuesday AMC (After Market Close), this is Tuesday close to Wednesday open. If earnings is Friday BMO (Before Market Open), this is Thursday close to Friday open.

  • The historical opening gap move in MRK stock price following earnings has averaged ±1.37% (meaning either direction), with a median of 1.56%.
  • The single best opening gap move was 2.11%
  • The worst gap over this timeframe was -2.35%.
  • For 50% of the dates, the stock opened higher after earnings.


    • AverageMinMaxMedianUp (%)Down (%)
    Absolute1.370.112.351.565050
    Simple-0.18-2.352.110.175050


  • Historical earnings opening gap moves gauge the stock's shift from the previous day's close to the opening price on dates surrounding an earnings announcement.
  • The term 'gap' is used because the price can undergo significant changes between the closing and opening prices following an earnings announcement.
  • Traders holding overnight positions find it crucial to comprehend historical earnings opening gap moves, enabling them to initiate risk management strategies once the market opens.
  • Option traders, restricted to trading during market hours, can only begin addressing risk after the market opens due to the absence of after-hours option trading.
  • Examining historical gap data empowers traders to evaluate potential overnight risks associated with earnings events, facilitating improved risk management and informed trading choices.
  • For instance, traders shorting option straddles can use historical gap moves as a reference to estimate potential outcomes and risks from holding the position overnight until the beginning of the trading day.
  • In summary, historical earnings opening gap moves offer valuable insights for traders to manage risk effectively and make well-informed trading decisions. Understanding historical trends equips traders to predict potential outcomes and make strategic decisions with confidence.