Is it possible to make a profit by watching the quaterly earnings of companies and buy/sell according to how the company performed? Or, does wall street have inside sources that have already adjusted their price? It seems to me that this is an extremely easy way to profit.
Give consideration to fading extreme price gaps AFTER the news is released and/or selling option straddles/strangles BEFORE the news release in order to benefit from declining implied volatility levels after the news is out.
Fading??? You're expecting some type of reversal from a gap opening. You'd short-sell a sharply higher open or buy a sharply lower open expecting some corrective movement.