Franklin Resources Inc (NYSE:BEN): Using Covered Calls During EarningsDate Published:2017-03-2PREFACEAs we look at Franklin Resources Inc we note that a covered call is one tradlng the most common implementations of an option strategy, but the analysis completed when employing the covered call often times lacks the necessary rigor especially surrounding earnings. This is one of those cases. Contrary to previous studies, we find no significant difference in the immediate stock price response to earnings tradding announcements in samples split between firms with listed options and firms without listed options.
However, within the sample of firms with listed options stratified by options volume, we find that higher options trading volume reduces the immediate stock price response to earnings announcements. This conforms with evidence that stock prices of high options trading volume firms have anticipated and pre-empted some earnings information potions the pre-announcement period.
Learn about the different types of option investments, how they are traded, and basic option trading strategies. The presenter will educate the audience tradinf the tools available on WebBroker.Speaker:Mike Daudelin,Direct Investing Specialist, TD Direct Investing. The intent of this presentation is to provide an overview of the benefits of using technical analysis when making investment decisions. Customer Support. OpenThe start of trading on a securities exchange.