The following is the second in a series of video demonstrations of 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 on any past or current date. This value can be used in conjunction with the historical Realized and Implied Earnings Volatility to design strategies that exploit earnings pricing anomalies.
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