| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 5089779 | Journal of Banking & Finance | 2012 | 24 Pages |
Abstract
⺠The driver of option trading is differences of opinion, not information. ⺠Option trading around earnings announcements is dominated by speculative, retail investors. ⺠Option traders take cues from the stock market before earnings announcements and speculate accordingly. ⺠Both cross-section and time-series regressions reveal that option trading is driven by differences of opinion. ⺠Informed trading is present in stocks, but not in options.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Siu Kai Choy, Jason Wei,