EARTH WEEK
Now through April 22, save up to 70% on digital learning resources. Learn more.
Register your product to gain access to bonus material or receive a coupon.
This PDF will be accessible from your Account page after purchase and requires PDF reading software, such as Acrobat® Reader®.
The eBook requires no passwords or activation to read. We customize your eBook by discreetly watermarking it with your name, making it uniquely yours.
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.
How to trade options before earning announcements — and profit whether the market raves or rages!
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.”