time spread Archives - Cboe Blogs

  • Market News | Jan 26, 2015, 5:00 PM

    Overcoming The Earnings Dilemma

    Overcoming The Earnings Dilemma

    As a market maker on the CBOE, I always had a simple plan when it came to trading stocks around their earnings announcement: Don’t do it. I, like most professional traders, didn’t like trading options on stocks with earnings coming out because that was the day of the quarter that typically had the most risk. There’s risk—huge risk—in both the underling stock moving erratically, and also in the option premium potentially being greatly affected by a “crush”[...]