Information content options trading


Information content options trading


We optlons that the information carried by stand-alone call purchases has only a shortterm impact on stock prices, but over a longer term, call purchases accompanied by information content options trading purchases have a positive impact. Call purchases accompanied by stock sales signal negative information about the firm, suggesting that some insiders use complicated trading strategies to manipulate the market.

Insider optiohs transactions are followed by negative returns, indicating these transactions are driven by negative information about the firm.Suggested Citation: Suggested CitationChen, Robert and Zhao, Xinlei Shelly, The Information Content of Insider Call Options Trading. Financial Management, Vol. 34, No. 2, Summer 2005. Available at SSRN. Recommended PapersChuang-Chang ChangNational Central University at Taiwan - Department of Finance Pei-Fang HsiehNational Tsing Hua University - Department of Quantitative Finance Yaw-Huei WangNational Taiwan UniversityDate Written: July 17, 2009.

Surprisingly, we find no evidence to support the predictive ability of the volatility demand from str.




Information content options trading

Information content options trading

Information content trading options



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