If you own shares of Advanced Micro Devices, (AMD +4.54%), Rambus (RMBS +10.41%), or athenahealth, Inc (ATHN +0.00%), prepare yourself for a wild ride this week.
All three of these companies are reporting earnings, and all three are heavily shorted -- with lots of investors betting against their short-term success. When these two variables combine, volatility is almost always the result.
Don't believe me? Just check out to the three stocks I called out two weeks ago: they moved an average of 12 percent following their respective earnings releases.
But instead of trying to time the market, I think it's much better for shareholders to prepare themselves for the volatility and focus on the factors that really matter to their long-term investing theses.
To help you do that, I've highlighted some important variables in the slideshow below that are worth watching for.
Sources: Finviz.com, E*Trade.
