Waiting on earnings for two positions, BAC & KO, which will provide a catalyst for the stocks to break out of their trading ranges. I’m indifferent to whether they trade higher/lower, simply that their volatility rises.

Coca-Cola Co. (NYSE:KO) is expected to report earnings on Tuesday, April 15. The whisper number is 46 cents, 2 cents ahead of the analyst estimates. Whispers range from a low of 45 cents to a high of 48 cents. Coca-Cola has a 60 percent positive surprise history, having topped the whisper in 29 of the 48 earnings reports for which we have data.

Earnings history:

Beat whisper: 29 qtrs
Met whisper: 2 qtrs
Missed whisper: 17 qtrs
Our primary focus is on post-earnings price movement. Knowing how likely a stock’s price will move following an earnings report can help you determine the best action to take (long or short). In other words, we look at what happens when the company beats or misses the whisper number expectation.

The table below indicates the average post-earnings price movement within a one and 30 trading day timeframe: