Does Option Trading Convey Stock Price Information?

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...

Full description

Saved in:
Bibliographic Details
Main Author: HU, Jianfeng
Format: text
Language:English
Published: Institutional Knowledge at Singapore Management University 2014
Subjects:
Options
Order flow
Information asymmetry
Delta hedging
Price discovery
Finance and Financial Management
Portfolio and Security Analysis
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
Tags: Add Tag
No Tags, Be the first to tag this record!
Institution: Singapore Management University
Language: English

Internet

https://ink.library.smu.edu.sg/lkcsb_research/3607
https://ink.library.smu.edu.sg/context/lkcsb_research/article/4606/viewcontent/DoesOptionTradingConveyStockPriceInformation.pdf

Similar Items