Option strategies for earnings announcements : a comprehensive, empirical analysis

Format:

Book

Author/Creator:

Zhou, Ping, Author.

Contributor:

Shon, John, Contributor.

Language:

English

Subjects (All):

Options (Finance).

Price-earnings ratio.

Speculation.

Physical Description:

1 online resource (1 v.) : ill.

Edition:

1st edition

Place of Publication:

[Place of publication not identified] FT Press 2013

Language Note:

English

System Details:

text file

Summary:

By trading on corporate earnings, investors can reliably profit in both up and down markets, while avoiding market risk for nearly the entire quarter. In this book, two leading traders and portfolio managers present specific, actionable techniques anyone can use to capture these sizable profits. Ping Zhou and John Shon have performed an unprecedented empirical analysis of thousands of stocks, reviewing tens of millions of data points associated with option prices, earnings announcement returns, and fundamentals. Their massive analysis has identified consistent opportunities associated with focusing on the magnitude of the market’s reaction to earnings, not its direction. Option Trading Set-Ups for Corporate Earnings News offers concrete guidance for improving the likelihood of making correct forecasts, and managing the risks of incorrect forecasts. It introduces several ways to exploit option trading opportunities around earnings news, discuss crucial issues that most retail investors haven’t considered, and explore aspects of earnings-related option trading that have never been empirically examined and documented before. For example, they identify hidden patterns and potential opportunities based on valuation, industry, volatility, analyst forecasts, seasonality, and trades that immediately follow earnings announcements. Simply put, trading on earnings reports offers immense profit opportunities, if you know how. This book provides incontrovertible facts and detailed strategies, not just theories and anecdotes!

Contents:

Earnings announcements : opportunities and risks

Option strategies for earnings announcements : an overview

Liquidity risk : bid-ask spreads

Bullish directional trades

Bearish directional trades

Long volatility trades

Short volatility trades

Buy volatility before earnings announcements

Ride the post-earnings-announcement-drift

Advanced analysis : improve the odds of winning

Implied volatility

Historical earnings announcement returns

Market capitalization

Valuation

Industry effects

Enhanced strategies.

Notes:

Bibliographic Level Mode of Issuance: Monograph

Description based on publisher supplied metadata and other sources.

ISBN:

9780132947350

0132947358

9780132947398

0132947390

OCLC:

827796699