Don’t Like The Earnings Results? You Can Sell or Buy Easily
Very simple, the largest tech companies in the U.S. will start reporting earnings over the next days. If you don’t like the news, for whatever reason, you can adjust your holdings. Professionals will be using the options markets (puts, calls) to hedge the uncertainty that surrounds earning reports.
There’s a market for puts and calls, you can attempt to do it yourself (not a great idea). The point is that it can be done, the prices are known, you can change your mind for whatever reason you would like. The cost of changing your mind = $0, commissions have eroded to $0/share.
You can change your entire investment or portfolio strategy (more or less), with minimal friction or transactions costs.