Trading on Corporate Earnings News: Profiting from Targeted, Short-Term Options Positions
“Trading on Corporate Earnings Newsis one of those rare, high-quality pieces of work that is destined to become an instant source of value creation for serious investors. Its greatest strength lies in linking actual statistics to market behavior and fundamental analysis. Serious investors who study the material will undoubtedly discover its value as a springboard for further analysis. That said, nobody interested in structuring option trades around corporate events such as earnings should be without this book. John Shon and Ping Zhou must be commended for creating a study of this caliber.”–Jeff Augen, author,Trading Options at ExpirationandDay Trading Options “John Shon and Ping Zhou have transformed two dry subjects–earnings announcements and options trading–into a dynamic, interesting, well documented, and highly readable book. Anyone wanting to improve their trade timing will need to read this book. It is an excellent addition to the options trading literature.”–Michael C. Thomsett, author,Options Trading for the Conservative Investor “John Shon and Ping Zhou have written the ultimate recipe book for trading earnings news with options. They cover the theory and evidence of earnings announcements and market reactions, and describe in great detail the implementation of option trading strategies that exploit these findings.Trading on Corporate Earnings Newsdemonstrates that rigorous statistical, economic, and financial analysis can lead to profitable investments. I recommend this book as an excellent reference for all investors interested in improving their option trading skills using earnings news and for all readers curious about the fascinating field of accounting and finance.”–Minh Trinh, CFA, PhD, Managing Principal, Referee Advisors LLC “John Shon and Ping Zhou have created a masterpiece based on clear and penetrating observations on stock price volatility. Their discovery that options-based trading around earnings announcements yields better returns, backed by their research and undeniable evidence, is groundbreaking. Written in simple and plain language, it is appropriate for the pro and novice alike. If you trade–or want to know how to trade options–you need to buy this book.”–John Reilly, Managing Partner, Alliance Capital Partners Trading on Corporate Earnings Newsshows how to earn large, quick profits by taking targeted, short-term options positions timed explicitly to exploit companies’ quarterly earnings announcements.The authors begin by presenting new findings from cutting-edge studies on market reactions to quarterly earnings news and surprises. Drawing on enormous data sets, they identify the types of earnings announcement trades that are most likely to yield profits, based on the predictable impact of several key variables. Next, they provide real examples of individual stocks–and, in some cases, conduct large sample tests–to help investors profit from these regularities. Finally, they show how to manage crucial nuances and pitfalls that can powerfully impact performance.Designed for every investor or trader,Trading on Corporate Earnings Newsbrings together everything you need: strong underlying theory, rigorous empirical research, actionable strategies, and real-world, plain-English execution techniques. Equity and options behavior around earnings announcementsHow stocks and options really move before and after earnings newsSurprising reactions to earnings surprisesWhy markets often don’t react the way you expect–and what to do about itImproving your odds on every tradePractical issues, proven theories, and unexpected empirical regularitiesBeyond options: powerful ideas for stock-based investingGain deep market insights that you can apply in every investment