Earnings

Earnings And Options: A Risky But Lucrative Relationship
May 25, 2021
Earnings

Earnings And Options: A Risky But Lucrative Relationship

Montréal Exchange

North American companies listed on a stock exchange report their earnings results every quarter. Options investors view this event as an opportunity to reap large returns if a stock moves dramatically in one direction or another. Earnings Move Stocks Companies must release information on their earnings to investors on a regular...

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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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6 years ago
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