Table of Contents:
  • Includes bibliographical references and index
  • Introduction
  • Earnings announcements: why are they so important?
  • Earnings surprises: definition and measurement
  • Earnings surprises: empirical evidence
  • Market reactions to earnings announcements
  • Market reactions to earnings surprises (are full of surprises)
  • General characteristics of optioned companies and options behavior around earnings announcements
  • Practical considerations before implementing trades
  • Directional bets: long calls, bull call spreads, long puts, and bear put spreads
  • Long straddle and strangle strategies
  • Short straddle and strangle strategies
  • Growth expectations and the torpedo effect
  • Revenue and expense surprises
  • Earnings surprise persistence
  • Other theories and evidence