Introduction -- Earnings announcements: why are they so important? -- Earnings surprises: definition and measurement -- Earnings surprises: empirical evidence -- Market reactions to earnings announcements -- Market reactions to earnings surprises (are full of surprises) -- General characteristics of optioned companies and options behavior around earnings announcements -- Practical considerations before implementing trades -- Directional bets: long calls, bull call spreads, long puts, and bear put spreads -- Long straddle and strangle strategies -- Short straddle and strangle strategies -- Growth expectations and the torpedo effect -- Revenue and expense surprises -- Earnings surprise persistence -- Other theories and evidence.