Book description
Profit from earnings announcements, by taking targeted, short-term option positions explicitly timed to exploit them! Based on rigorous research and huge data sets, this book identifies the specific earnings-announcement trades most likely to yield profits, and teaches how to make these trades—in plain English, with real examples!
Trading on Corporate Earnings News is the first practical, hands-on guide to profiting from earnings announcements. Writing for investors and traders at all experience levels, the authors show how to take targeted, short-term option positions that are explicitly timed to exploit the information in companies’ quarterly earnings announcements. They first present powerful findings of cutting-edge studies that have examined market reactions to quarterly earnings announcements, regularities of earnings surprises, and option trading around corporate events. Drawing on enormous data sets, they identify the types of earnings-announcement trades most likely to yield profits, based on the predictable impacts of variables such as firm size, visibility, past performance, analyst coverage, forecast dispersion, volatility, and the impact of restructurings and acquisitions. Next, they provide real examples of individual stocks–and, in some cases, conduct large sample tests–to guide investors in taking advantage of these documented regularities. Finally, they discuss crucial nuances and pitfalls that can powerfully impact performance.
Table of contents
- Title Page
- Copyright Page
- Dedication Page
- Contents
- Acknowledgments
- About the Authors
- Preface
- Part I: Introduction
- Part II: Theory: Earnings Announcements and Earnings Surprises
- Part III: Evidence: Market Reactions
-
Part IV: Implementation: Options Trading Strategies
- Chapter 7. General Characteristics of Optioned Companies and Options Behavior Around Earnings Announcements
- Chapter 8. Practical Considerations Before Implementing Trades
- Chapter 9. Directional Bets: Long Calls, Bull Call Spreads, Long Puts, and Bear Put Spreads
- Chapter 10. Long Straddle and Strangle Strategies
- Chapter 11. Short Straddle and Strangle Strategies
- Part V: Fine Tuning: Improving the Odds of a Profitable Trade
- References
- Index
- Financial Times Press
Product information
- Title: Trading on Corporate Earnings News: Profiting from Targeted, Short-Term Options Positions
- Author(s):
- Release date: March 2011
- Publisher(s): Pearson
- ISBN: 9780132615891
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