Why Investors Should Trade Options Around Earnings Announcements

Book description

This Element is an excerpt from Trading on Corporate Earnings News: Profiting from Targeted, Short-Term Options Positions (9780137084920) by John Shon, Ph.D., and Ping Zhou, Ph.D. Available in print and digital formats.

Two Line Description

How to trade options before earning announcements — and profit whether the market raves or rages!

Text Excerpt

We’ve all seen perplexing market reactions to earnings announcements, but would you have guessed that this happens 40% of the time? Even if you predict the right direction of an earnings surprise, it’s still easy to lose money with a directional bet. So how can you profit from an earnings announcement? You use an options trading strategy called a “straddle.”

Table of contents

  1. Title Page
  2. Copyright Page
  3. FTPress Delivers Elements

Product information

  • Title: Why Investors Should Trade Options Around Earnings Announcements
  • Author(s): John Shon, Ping Zhou
  • Release date: March 2011
  • Publisher(s): Pearson
  • ISBN: 9780132659772