The conference call after an earnings release where management discusses results and takes analyst questions.
The call often moves the stock more than the press release, because guidance details, tone, and answers to hard questions come out here. The stock can reverse its initial after-hours move during the call.
Transcripts are available free from most brokers and investor-relations sites.
Example: a stock is up 6% after hours on a headline beat. On the call, the CFO says margins will compress next quarter. By the end of the call the stock is down 4%.
Original diagrams for the ideas on this page. Illustrative, not real market data.
Buying a call: payoff at expiry. A 105-strike call bought for 3 loses that whole 3 if the price finishes at or below 105, breaks even at 108, then gains a dollar for every dollar higher. The loss is capped at the premium; the upside is not capped.
Educational only, not advice. Spotted an error? Post in Site Feedback.