Tim Leung, Ph.D.inQuantitative Investing·Aug 7, 2020Member-onlyHow Earnings Announcements Affect Option PricesThe unique behavior of pre-announcement implied volatility — Options are intrinsically forward-looking contracts, so their prices should account for the uncertain stock price impact of an upcoming earnings release. Public companies routinely release summaries of their operations and performance, including income statements, balance sheets, and other reports. Such events are commonly referred to as earnings announcements.Earnings4 min readEarnings4 min read
Harel Jacobson·Mar 5, 2022Think Like a Market Maker — Understanding Implied VolatilityAny option trader who focuses on volatility trading will tell you that the price of volatility is the single-most-important factor in trading volatility. …Volatility14 min readVolatility14 min read
Findoc Financial services Group·Oct 6, 2020Difference between option and future trading ?Derivatives are financial instruments which derive their value from underlying assets such as equity shares, commodities , currencies , and interest rates. Futures and options are the two most commonly traded derivatives. Market volatility also plays a significant role in the trading of futures and options.It is imperative to understand…Future1 min readFuture1 min read
