The following is the first video demo of the spreadsheet tools that accompany my new book: Exploiting Earnings Volatility: An Innovative New Approach to Evaluating, Optimizing, and Trading Option Strategies to Profit from Earnings Announcements.
The following video demonstrates how to use the Basic spreadsheet to calculate the Implied Earnings Volatility (IEV) embedded in option prices prior to a past earnings announcement. This value can be used in conjunction with the current Implied Earnings Volatility to design strategies that exploit earnings pricing anomalies.
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