Trading on Corporate Earnings News: Profiting from Targeted, Short-Term Options Positions

Part V: Fine Tuning: Improving the Odds of a Profitable Trade

In Part IV, we presented several real examples of our main options-trading strategies, making sure to show both profitable and unprofitable trades. Part V discusses several other empirical findings from research studies that, when applied properly, will help improve your odds of making profitable trades around earnings announcements. Chapter 12 discusses how growth companies are particularly susceptible to large downward swings when earnings are missed. Chapter 13 describes companies that consistently and persistently beat earnings expectations. Chapter 14 discusses revenue and expense surprises. Chapter 15 wraps up the book with a general discussion of other empirical findings that ...