| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 960863 | Journal of Financial Markets | 2014 | 30 Pages |
Abstract
⺠We examine the composition of trading activity in stock and option markets. ⺠We evaluate whether traders use option markets for delta or vega exposure. ⺠Additionally, we evaluate traders' preferences on trading venue by exposure type. ⺠We find that vega trading is a larger component of option market activity than is delta trading. ⺠Lastly, delta traders prefer stocks over options, while both trader types prefer calls over puts.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Hilda Maraachlian, Thomas Rourke,