Download or read book Trading on Corporate Earnings News written by John Shon and published by FT Press. This book was released on 2011-03-09 with total page 225 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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.

Download or read book Why Investors Should Trade Options Around Earnings Announcements written by John Shon and published by Pearson Education. This book was released on 2011-03-16 with total page 20 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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. Two Line Description How to trade options before earning announcements — and profit whether the market raves or rages! Text Excerpt 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.”

Download or read book Why Are Earnings Announcements So Important to Traders and Investors written by John Shon and published by Pearson Education. This book was released on 2011-03-16 with total page 23 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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. Understand those crucial quarterly earning announcements: how they work, and how they impact stock prices. Quarterly earnings announcement are the most salient, most anticipated, regularly-recurring announcement that companies make. They are the most watched piece of information that comes directly from the people that know the business the best. They are also considered the most reliable source of information, largely because companies are subject to strict SEC Rule 10b-5 rules...

Download or read book Option Strategies for Earnings Announcements written by Ping Zhou and published by FT Press. This book was released on 2012-10-15 with total page 258 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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!

Download or read book option trading and earnings news dissemination written by kaushik i. amin and charles m.c. lee and published by . This book was released on 1993 with total page 34 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Option Trading and Earnings News Dissemination written by Kaushik I. Amin and published by . This book was released on 1993 with total page 42 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Day Trading Options written by Jeffrey Augen and published by FT Press. This book was released on 2010 with total page 193 pages. Available in PDF, EPUB and Kindle. Book excerpt: A top options trader shows investors how they can use certain strategies, teaches why day trading options are more practical than ever, and helps them understand trends in the options market that have leveled the playing field between large institutions and private traders.

Download or read book Option Trading and Earnings News Dissemination written by Charles M.C. Lee and published by . This book was released on 1999 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Option market activity increases by more than 10% in the four days before quarterly earnings announcements. We show that the direction of this preannouncement trading foreshadows subsequent earnings news. Specifically, we find option traders initiate a greater proportion of long (short) positions immediately before good (bad) earnings news. Mid-quote returns to active-side option trades are positive during non-announcement periods, and are significantly higher immediately prior to earnings announcements. We conclude that option trading facilitates price discovery (the incorporation of information in price) for the underlying security, particularly during the dissemination of earnings news.

Download or read book Event Trading written by Ben Warwick and published by McGraw-Hill Companies. This book was released on 1996 with total page 276 pages. Available in PDF, EPUB and Kindle. Book excerpt: Designed to capture profits from market reactions to news events, event trading provides a systematic approach for exploiting a variety of market-moving events such as economic reports, interest rate changes and surprises in corporate earnings.

Download or read book Option Trading Price Discovery and Earnings News Dissemination written by Kaushik I. Amin and published by . This book was released on 1998 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Option market activity increases by more than 10 percent in the four days before quarterly earnings announcements. We show that the direction of this pre-announcement trading foreshadows subsequent earnings news. Specifically, we find option traders initiate a greater proportion of long (short) positions immediately before good (bad) earnings news. Midquote returns to active-side option trades are positive during non-announcement periods, and are significantly higher immediately prior to earnings announcements. Bid-ask spreads for options widen during the announcement period, but traders do not gravitate toward high delta contracts. Collectively, the evidence shows option traders participate generally in price discovery (the incorporation of private information in price), and more specifically in the dissemination of earnings news.

Download or read book Keene on the Market written by Andrew Keene and published by John Wiley & Sons. This book was released on 2013-07-29 with total page 260 pages. Available in PDF, EPUB and Kindle. Book excerpt: A leading expert unveils his unique methodology for options trading Options provide a high leverage approach to trading that can significantly limit the overall risk of a trade or provide additional income. Yet, many people fail to capitalize on this potentially lucrative opportunity because they mistakenly believe that options are risky. Now options expert Andrew Keene helps aspiring investors to enter this sector by explaining the principles of the options market and showing readers how to utilize calls and puts successfully. Leading options expert Andrew Keene demystifies the basics of options trading Debunks the myth that call purchases are synonymous with being bullish and that put purchases are bearish Lays out in detail two distinct proprietary trading plans readers can follow Explains how to trade using market maker techniques and tricks from the trading floor to help with his probabilities in options trading Andrew Keene is best known for reading unusual options activity and seeing what others don't. Now he shares what he knows in a book that opens the opportunities of options trading to any investor.

Download or read book Options and Earnings Announcements written by Monique W.M. Donders and published by . This book was released on 2000 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: In this paper we study the impact of earnings announcements on trading volume, open interest and spreads in the stock option market. We find that option volume is higher around announcement days, even if we correct for stock volume and the expected future volatility of stock returns. Results in the pre-event period are different for good and bad news samples, indicating that option traders have access to (possibly short lived) private information. During the days before the announcements open interest tends to increase. After the earnings news dissemination traders seem to lose interest in the contracts and cancel part of their option positions thereby reducing open interest to normal levels. Analysis of quoted spreads provide no evidence of dealers' anticipation of higher information asymmetry in the pre- or post announcement period. However, results for effective spreads indicate that the transaction costs are higher on the announcement day itself and on the day immediately following the earnings dissemination. Both quoted and effective spreads are shown to respond to changes in trading volume and expected return variability.

Download or read book Options Made Easy written by Guy Cohen and published by Pearson Education. This book was released on 2005-07-18 with total page 402 pages. Available in PDF, EPUB and Kindle. Book excerpt: In Options Made Easy, Second Edition, Guy Cohen clearly explains everything you need to know about options in plain English so that you can start trading fast and make consistent profits in any market, bull or bear! Simply and clearly, the author reveals secrets of options trading that were formerly limited to elite professionals–and exposes the dangerous myths that keep investors from profiting. As you set out on your options journey, you'll learn interactively through real-life examples, anecdotes, case studies, and pictures. Guy Cohen is your friendly expert guide, helping you pick the right stocks, learn the right strategies, create the trading plans that work, and master the psychology of the winning trader. Master all the essentials–and put them to work Options demystified so that you can get past the fear and start profiting! Learn the safest ways to trade options Identify high-probability trades that lead to consistent profits Design a winning Trading Plan–and stick to it Understand your risk profile and discover exactly when to enter and exit your trades Choose the right stocks for maximum profit Screen for your best opportunities–stocks that are moving–or are about to move Discover the optimum strategies for you Match your trading strategies to your personal investment goals No bull! The realities and myths of the markets What you must know about fundamental and technical analysis

Download or read book Profiting with Iron Condor Options written by Michael Benklifa and published by FT Press. This book was released on 2011-01-19 with total page 193 pages. Available in PDF, EPUB and Kindle. Book excerpt: In a straightforward approach, Hanania Benklifa provides readers the practical knowledge needed to trade options conservatively in Profiting with Iron Condor Options: Strategies from the Frontline for Trading in Up or Down Markets. The objectives are simple: make 2%-4% a month staying in the market as little as possible. Market experts use option condors to consistently earn monthly returns while trading conservatively and staying in the market as little as possible. Benklifa--who manages $10+ million in condor trades each month--shows you exactly how to run these trades and earn these returns, delivering all the details you need to master every nuance of this remarkable strategy. Benklifa shares option condors examples using market realities, not oversimplified abstractions. You’ll learn how to handle real-life market dynamics that can dramatically impact results, including rising and falling volatility, changing bid-ask spreads, and distorted call parity. You’ll learn how to profit in the sideways markets where condor options are most widely used--and also in extreme-trending markets that offer their own surprising opportunities. Traders who focus on a specific type of trade have a history of outperforming stock pickers and directional investors. This book will give you that deep and usable level of knowledge about one of today’s most well-proven strategies: option condors.

Download or read book The New Trading for a Living written by Alexander Elder and published by John Wiley & Sons. This book was released on 2014-09-29 with total page 313 pages. Available in PDF, EPUB and Kindle. Book excerpt: The best-selling trading book of all time—updated for the new era The New Trading for a Living updates a modern classic, popular worldwide among both private and institutional traders. This revised and expanded edition brings time-tested concepts in gear with today's fast-moving markets, adding new studies and techniques for the modern trader. This classic guide teaches a calm and disciplined approach to the markets. It emphasizes risk management along with self-management and provides clear rules for both. The New Trading for a Living includes templates for rating stock picks, creating trade plans, and rating your own readiness to trade. It provides the knowledge, perspective, and tools for developing your own effective trading system. All charts in this book are new and in full color, with clear comments on rules and techniques. The clarity of this book's language, its practical illustrations and generous sharing of the essential skills have made it a model for the industry—often imitated but never duplicated. Both new and experienced traders will appreciate its insights and the calm, systematic approach to modern markets. The New Trading for a Living will become an even more valuable resource than the author's previous books: Overcome barriers to success and develop stronger discipline Identify asymmetrical market zones, where rewards are higher and risks lower Master money management as you set entries, targets and stops Use a record-keeping system that will make you into your own teacher Successful trading is based on knowledge, focus, and discipline. The New Trading for a Living will lift your trading to a higher level by sharing classic wisdom along with modern market tools.

Download or read book Trading Weekly Options written by Russell Rhoads and published by John Wiley & Sons. This book was released on 2014-01-23 with total page 213 pages. Available in PDF, EPUB and Kindle. Book excerpt: A comprehensive resource for understanding and trading weekly options Weekly options are traded on all major indices, as well as high volume stocks and ETFs. They continue to surge in popularity, accounting for as much as twenty percent of daily options volume. And while existing options strategy can be used with weeklys, they are particularly conducive to premium selling strategies and short-term trades based on a news item or technical pattern. With this timely guide, and its companion video, you'll learn exactly how to use weeklys to make more money from option selling strategies and how to make less expensive bets on short-term market moves. Written by Russell Rhoads, a top instructor at the CBOE's Options Institute, Trading Weekly Options + Video skillfully explains the unique pricing and behavioral characteristics of weekly options and shows how to take advantage of those unique features using traditional option strategies. The first book and video combination product focused solely on weekly options Outlines the most effective trading strategies associated with weekly options, including taking advantage of the accelerating time-decay curve when an option approaches expiration Filled with the practical, real-world insights of author Russell Rhoads, an expert in this field Created with both the experienced and beginning option traders in mind, this book and video package will help you make the most of your time trading weekly options.

Download or read book Trading Against the Crowd written by John F. Summa and published by John Wiley & Sons. This book was released on 2004-10-27 with total page 227 pages. Available in PDF, EPUB and Kindle. Book excerpt: Efficient market theorists contend that markets are random and thus not predictable. With the publication of Trading Against theCrowd, however, noted author, economist, and professional trader John Summa convincingly shows that investor sentiment can be incorporated into profitable stock and stock market trading systems. In this groundbreaking book, Summa explains how to use popular gauges of crowd psychology, such as put/call ratios, option-implied volatility, short sales, investor surveys, and advisory opinion to trade against, or contrary to, prevailing market sentiment. He also makes compelling arguments against the efficient markets hypothesis with the presentation of his own quantitative weekly bear and bull news-flow intensity indices, which he builds from news scans. This data series, and other popular measures of crowd psychology, are processed through custom indicators that are programmed into profitable trading systems, such as Squeeze Play I & II, Tsunami Sentiment Wave, and the Fourth Estate. Trading Against the Crowd is the first book to provide a comprehensive assessment of investor crowd psychology, offering valuable market timing tools and trading techniques, including: MetaStock and Trade Station system and custom indicator code; comparative statistical studies of CBOE, OEX, and equity-only put/call ratios; straightforward instructions for combining price triggers with sentiment indicators; a practical guide to understanding put/call ratios, short sales, investor surveys, newsletter opinion, and stock market news-flow intensity; how to use LEAP options as trading vehicles to avoid use of stop loss orders; use of put/call ratios for trading the Treasury bond futures market; and test results and evaluation of trading system performance. Many of today’s professional money managers rely on investor sentiment for improved market timing. They know that at extremes of market sentiment, markets tend to be the most predictable.Trading Against the Crowd shows how you can begin to profit from these short- to medium-term sentiment waves generated by the actions of the speculative crowd. Put into practice powerful sentiment data using thoroughly back-tested trading systems, and rise above the herd mentality of the investor crowd, where potentially large profits await.