Just buy 'em? The average stock rises on earnings, Goldman finds

April 16, 2015 10:04 AM

70 0

To be sure, the options research team goes on to indicate that a simple strategy of buying calls on every stock ahead of earnings is not necessarily a great strategy, as the likely returns don't adequately compensate investors for the risk. Still, a trend this pronounced is crying out for an explanation.

Goldman's best guess is that after results, investors collectively tend to issue a sigh of relief, as a potentially stock-crushing event is now in the rear-view window.

Read more

To category page