Earnings Hot Zone:Five Star Edition
Find the earnings patterns I trade. See the statistics behind the setup.
Find the earnings patterns I trade. See the statistics behind the setup.
Use historical price patterns, earnings statistics and my Five Star Ranking System to identify potential trading setups before earnings. These are the types of ideas I discuss with Charles Payne on Fox Business and trade live in Simpler Trading’s Mastering the Trade room. Now you can research those patterns on your own thinkorswim charts.
See how it works ↓For thinkorswim desktop · Daily stock charts · Available through Simpler Trading
My approach to earnings season
Start with a better earnings question.
“What has this stock actually done around earnings, and does that history support the trade I’m considering?”
That is where my process begins. I look for a combination of earnings behavior, trend and timing before I decide whether a stock belongs on my watchlist. The Earnings Hot Zone brings those pieces together so I can compare ideas with a consistent framework.
- See the pre-earnings run, the final push and the reaction after the report.
- Read the numbers behind a stock’s Five Star Rank.
- Compare your price scenario with the options market’s expected move.
The Five Star Ranking System
Five questions behind every rank.
A quick visual summary, backed by the details.
The ranking checks five aspects of a stock’s history. Each passing criterion contributes a star. Read the individual stats to understand why a stock earned its score and whether the setup fits your plan.
1. Earnings beats
How often has the company beaten consensus EPS estimates? This gives you a starting point for evaluating its reporting history.
2. EPS growth
Has earnings per share grown quarter over quarter? Review the estimates and actual results available in the stats row.
3. Trend
Does the stock have a green-leaning trend over the lookback period? Put the earnings history alongside its broader price behavior.
4. Gaps up
How often has the stock opened higher following earnings? Compare the initial reaction with what happened afterward.
5. Hot Zone movement
How much has the stock moved, on average, during the pre-earnings window? See whether the history supports a momentum thesis.
Inside the tool
See the pieces that shape the setup.
Explore real screenshots from my class. Click any chart to enlarge the details.
A visual home for your earnings research.
The chart brings the rank, earnings dates, historical gaps, colored time windows and expected-move lines into the same workspace. Use it to see how the pieces fit together before you choose a trade.
Historical AVGO class example. The screenshot also shows TrendStrength Turbo Candles, moving averages and the Squeeze as companion studies.
Recognize the pattern across quarters.
Colored clouds mark the periods before and after past reports. Compare the most recent quarters with the longer history to see whether the behavior is consistent or changing.
Why it helps: A positive average can hide a mixed history. The clouds let you examine the individual quarters behind that average.
Put actual numbers behind the story.
The stats row shows available history, earnings beats, EPS growth, gap behavior and average moves in dollars and percentages. When the next report is confirmed and close enough, additional labels show the earnings countdown and expected-move references.
Why it helps: Compare the size and consistency of historical moves instead of relying on how dramatic a chart looks.
Keep volatility in the conversation.
The Hot Zone IV Accelerator displays implied volatility and IV Rank. Its 0–100 rank places current IV within its own past-year range, while earnings markers help you compare how volatility changed around earlier reports.
Why it helps: A stock idea and an options entry are different decisions. IV context helps you evaluate how much event uncertainty may already be reflected in premium.
Make the timing visible.
Hot Zone clouds, earnings markers, gap labels and expected-move lines help you separate the run-up from the report itself and the follow-through afterward.
Understand the rank.
Color-coded statistics show which criteria pass, which do not and where data is limited. You can investigate a missing star rather than treating the total as an automatic decision.
Evaluate the premium backdrop.
See whether implied volatility is relatively elevated or compressed and how it behaved around previous earnings events.
The earnings timeline
Three windows. Different trading questions.
Does the stock tend to build momentum ahead of the report?
How does it behave as the announcement gets closer?
Does the reaction continue, fade or reverse?
Default windows are configurable. The Final Push sits inside the 21-day Hot Zone. Historical colors reflect movement during each window.
Expected-move reference levels
Put your price scenario in perspective.
A target on a chart becomes more useful when you can compare it with what the options market is pricing. The suite displays upside and downside reference levels around the current price when an eligible earnings event is approaching.
Use the ladder as context when reviewing potential strikes and price targets. The stats row identifies whether the calculation is using thinkorswim’s Market Maker Move or an IV-based estimate.
These levels are estimates, not predictions, guaranteed boundaries or a promise of profit. Actual moves can exceed them.
How I use it
Turn a watchlist into a research process.
I use the tool to organize my decisions, then bring the chart, the market and my risk plan into the conversation.
Find the candidates.
Start with an earnings calendar, a watchlist or an earnings scan. Identify stocks approaching their reporting window.
Check the history.
Review the stars and the stats. Then compare the most recent clouds and gaps with the longer-term averages.
Evaluate the entry.
Look at trend, pullbacks, consolidation and broader market conditions. Entering the Hot Zone alone does not make a trade.
Build the plan.
Consider IV and expected moves alongside position size, potential exits and whether you intend to hold through the report.
Companion tools in my workflow
TrendStrength Turbo Candles & earnings scans
My class also demonstrates TrendStrength Turbo Candles for visual trend and momentum context, plus custom scans for finding earnings candidates. These work alongside the three core Hot Zone studies.
Check the current Simpler Trading sales page for the studies, scans, training and companion tools included with your purchase.
See current package details ↗
Meet Danielle Shay
The same earnings framework I teach and trade.
Options trader. Investor. Author. Media expert. Educator.
I’m Danielle Shay, Vice President of Options at Simpler Trading and the writer behind Five Star Trader. You may have seen me discussing stocks with Charles Payne on Fox Business, on Schwab Network, or in my market updates on YouTube and X.
My approach combines earnings behavior, technical patterns and a clear trading plan. This page gives you a closer look at the research tools behind that process, so you can decide whether they belong in yours.
More about my trading approach →Before you get started
Your Earnings Hot Zone questions, answered.
Platform, chart settings and what the tool can tell you.
What platform does Earnings Hot Zone: Five Star Edition use?
The three-study suite is written for thinkorswim. The usage guide describes installation through the desktop platform’s custom Studies tools. It relies on thinkorswim’s earnings-calendar and options implied-volatility data.
What chart timeframe should I use?
The guide recommends a two-year daily chart, extended hours off and right-side expansion enabled. The studies hide on intraday aggregations. Two years allows room for up to eight quarterly earnings reports, subject to available history.
Does the tool tell me when to buy or sell?
No. It provides historical context, a configurable ranking and options-pricing references. Use that information alongside your own entry criteria, market analysis and risk management. A Five Star Rank does not guarantee a successful trade.
Does it work on ETFs, futures or newly listed stocks?
It is designed for individual stocks with quarterly earnings reports. ETFs, indexes and futures generally do not have the earnings events the suite needs. Newer stocks may have partial history, so some criteria can be unavailable.
Why might expected-move lines be missing?
The guide says targets require a confirmed upcoming earnings event within the configured window, along with chart expansion space and the required data. If the event date is not confirmed or is outside that window, the targets may not appear.
Are the screenshots showing current trade recommendations?
No. These are historical examples from Danielle’s class slides, used to demonstrate the interface and features. They are not current signals or representations of results a buyer should expect.
Where can I purchase the tool and see what is included?
Use the links on this page to visit Simpler Trading for the current offering, pricing, package contents and purchase terms. This Five Star Trader page explains the tool and Danielle’s workflow; purchases are completed through Simpler Trading.
Choose how you want to get started
Your earnings toolkit. Your next step.
Get the thinkorswim tool on its own, or pair it with my class to learn how I use it to research earnings setups.
The tool
Put the patterns on your chart.
Get Earnings Hot Zone: Five Star Edition for your own thinkorswim research. Explore the historical patterns, Five Star rankings, earnings statistics and IV context.
Buy the thinkorswim Tool ↗The tool + class
Learn the process behind the setups.
Pair the thinkorswim tool with my class for a closer look at how I research earnings patterns and use the toolkit in my trading process.
Buy the Tool + Class ↗Review current pricing and package details on the purchase pages.
Disclosure: I am affiliated with Simpler Trading and may receive compensation from purchases made through links on this page.
For education and research, not individualized investment advice. Options trading involves risk and may result in substantial losses. Historical examples and rankings do not guarantee future results. Expected-move levels are estimates, not predictions. Screenshots may include companion studies beyond the three core Earnings Hot Zone studies.
Earnings Hot Zone: Five Star Edition was authored by Darrell Gum based on a previous study by Eric Purdy. Product materials © 2026 Simpler Trading LLC. thinkorswim is a platform of Charles Schwab; references describe compatibility and do not imply endorsement.
Take the next step
Put the Earnings Hot Zone on your charts.
Choose the thinkorswim tool on its own, or add my class to learn the process behind the setups.