The study looked at how the amount of options traded compared to stocks affects how the market reacts to earnings surprises. Companies with high option trading before announcing earnings had a smaller market reaction to surprises compared to those with low option trading. This difference was more pronounced for companies with higher pre-announcement returns. The results suggest that option traders who have more information can predict earnings surprises, making them less surprising. Overall, the findings show that options help make information in the market more efficient.