JW4 · Research domains

Macro events and earnings risk in US stock and options research

Scheduled events can change the shape of the return distribution, not just its average. JW4 separates ordinary market variability from event-driven gap, repricing and liquidity risk.

Published 2026-07-22 · Updated 2026-07-22 · Jason Lee
macro event riskearnings riskUS stock event analysisoptions gap riskFOMC options riskeconomic calendarbinary event risk

Events change the distribution

Inflation data, employment reports, central-bank decisions and earnings can create discontinuous moves. Implied volatility may rise before the event and collapse afterward even when the underlying moves sharply.

Macro and company events differ

Macro shocks affect discount rates, correlations and broad risk appetite. Earnings combine company-specific expectations, guidance and positioning. The research uses a shared event framework while preserving these distinct transmission channels.

Avoiding false precision

Consensus estimates and implied moves are reference distributions, not promises. Scenario bands, sensitivity analysis and post-event review are preferred to a single point forecast.

Research method

  1. Build a dated event map and distinguish known timing from uncertain timing.
  2. Measure pre-event implied volatility, expected move, skew, liquidity and cross-asset sensitivity.
  3. Compare base, upside, downside and gap scenarios with explicit loss boundaries.
  4. After the event, separate price surprise, volatility repricing and execution effects.

Boundaries and limitations

Unexpected headlines, revisions and policy communication can dominate scheduled data. Historical event responses are small samples and are sensitive to the surrounding market regime.

Research takeaway

Event research is strongest when it treats timing as known but direction and magnitude as uncertain, and when the risk boundary survives a discontinuous move.

Related research

Research and technology implementation only. This is not financial, investment, or trading advice.