Calling All Fans!

Submit your video questions to be answered LIVE on Friday morning!


Market Measures

Monday – Friday | 9:00 – 9:20a CT

Volatility in Earnings Season

Market Measures

Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.

The financial statements which public companies are required to release can greatly impact the price and implied volatility of relevant equities. Public companies are also required to release the date of the earnings announcement. However, according to our study, the implied volatility fluctuations accompanying the earnings announcements of relevant stocks do not have a significant influence on the volatilities of the indices.

Our study shows that during the earnings seasons, neither implied or realized S&P 500 short-term volatilities are significantly different from their yearly average, and, during the earnings seasons, the premium between implied and realized short-term volatility still holds. This means we can trade indices and sell the over-stated implied volatility without worrying about the influence of the earnings announcements.

Market Measures More installments

See All »

Latest tastytrade Videos As of October 18

Most Shared From the last 30 days