It seems to me like there could be some way/s to play earnings--probably more in the anticipation than actual event, though I know there is research on post earnings effects. I'm curious if anyone has consistently made profits in this area, and if so are willing to give some sense of what they focus on. thanks.
depends on how you want to play it. tools and approach. same as fixing your car. people trade gaps,directional,stocks, options, people buy \sell volatility on options. plenty of ways.
There is an excellent book "Option Strategies For Earnings Annoucements" by Zhou and Shon. It informs the reader of what is more likely to work than not, with in depth analysis of past performances. It covers going both long and short. In my humble opinion, this is one of the better books out there on the earnings subject. Cheers!
thanks for responses so far--esp book recommendation (will ck it out). Still curious if anyone is consistently winning overall from their earnings approach? (that is, theory is nice, but actual consistent performance is obviously want really matters)
. Note/fyi: this builds on an earlier work they did " Trading on Corporate Earnings News: Profiting from Targeted, Short-Term Options Positions that cost less.