Trading options information asymmetry



Besides, volatility clustering occurs at a faster pace in the post- derivatives period. Although carefully collected, accuracy cannot be guaranteed. Show full item record. Cookies are used by this site. Wenchi KaoChristopher K.




Posted: 24 Apr Last revised: 22 Feb Option listing increases informed and uninformed trading by We establish the causal effects using control stocks with similar propensities of listing and a quasi-natural experiment using option listing standards. The benefits are more prominent for stocks with active options trading and opaque stocks.

The reduction of information risk is larger asymmety good news than bad news, and the stock price response to earnings surprise weakens after listing. The results suggest that options improve the overall market information environment beyond substitutional effects to stock trading. Keywords: Option listing, information asymmetry, order flow, probability of informed trading, liquidity shocks. Suggested Citation Hu, Jianfeng, Option Listing and Information Asymmetry February 17, Forthcoming in the Review of Finance.

Subscribe to this fee journal for more curated articles on this topic Econometric Modeling: Capital Markets - Asset Pricing eJournal. Traing to this fee journal for more curated articles on this topic Econometric Modeling: Derivatives eJournal. Subscribe to this fee journal for more curated articles on this topic …and the Cross-Section of Expected Returns By.

Uncertainty, Market Structure, and Liquidity By. Chairat Chuwonganant Why Does the Option to Stock Volume Ratio Predict Stock Returns? Does Option Trading Convey Stock Price Information? Jianfeng Hu Where Do Informed Traders Trade First? Option Trading Activity, News Releases, and Stock Return Predictability By. Cross-Firm Information Flows and the Predictability of Stock Returns By. Bernd Schlusche Options Illiquidity: Determinants and Implications for Stock Returns By. Order Flow and Expected Option Returns By.

Dmitriy Muravyev Backtesting By. Yan Liu Calibration of a Stock's Beta Using Options Prices By. Frederic Abergel Asymemtry are used infoemation this site. To decline or learn more, trzding our Cookies page. This page was processed trading options information asymmetry apollo7 in 0. Open PDF in Browser. Using the URL or DOI link below will ensure access to this page indefinitely.

Jianfeng Hu Singapore Management University - Lee Kong Chian School of Business. Option listing increases informed and uninformed trading by Jianfeng Hu Contact Author. Singapore Management University - Lee Kong Chian School of Business email. Capital Markets: Market Efficiency eJournal. Subscribe to this fee journal for more curated articles on this trading options information asymmetry. Econometric Modeling: Capital Markets - Asset Pricing eJournal. Econometric Modeling: Derivatives eJournal.

Uncertainty, Market Structure, and Liquidity. Why Does the Option to Stock Volume Ratio Predict Stock Returns? Where Do Informed Traders Trade First? Option Trading Activity, News Releases, and Stock Return Predictability. Cross-Firm Information Flows and the Predictability of Stock Returns. Options Illiquidity: Determinants and Implications for Stock Returns. Order Flow and Expected Option Returns. Calibration of a Stock's Beta Using Options Prices.

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Options trading strategies & market experiences · Tom Sosnoff of tastytrade


Volatility Information Trading And Its Implications For Information Asymmetry, Option Spreads, And Implied Volatility Skew. Information Asymmetry and Option Trading on ResearchGate, the professional network for scientists. Video embedded  · Asymmetric information, sometimes referred to as information failure, is present whenever one party to an economic transaction possesses greater.

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