Does Option Trading Convey Stock Price Information?

After executing option orders, options market makers turn to the stock market to hedge away the underlying stock exposure. As a result, the stock exposure imbalance in option transactions translates into an imbalance in stock transactions. This paper decomposes the total stock order imbalance into a...

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Bibliographic Details
Main Author: HU, Jianfeng
Format: text
Language:English
Published: Institutional Knowledge at Singapore Management University 2014
Subjects:
Online Access:https://ink.library.smu.edu.sg/lkcsb_research/3607
https://ink.library.smu.edu.sg/context/lkcsb_research/article/4606/viewcontent/DoesOptionTradingConveyStockPriceInformation.pdf
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Institution: Singapore Management University
Language: English