Earnings

Evaluating Earnings Variability
May 03, 2016
Earnings

Evaluating Earnings Variability

Richard Croft

We often hear about the expected movement in a stocks’ share price based on an upcoming earnings release. Calculated as an implied trading range by reverse engineering the option pricing formula. Traders typically use some version of the Black Scholes option pricing model to calculate the theoretical fair value for a call and...

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