option trading volumeinvestor disagreementIn addition to informed trading in options, we show that divergence in investor beliefs is an important driver of trading in options. We find a strong negativedoi:10.2139/ssrn.3256061Allaudeen Hameed
We present strong evidence that option trading volume contains information about future stock prices. Taking advantage of a unique data set, we construct put-call ratios from option volume initiated by buyers to open new positions. Stocks with low put-call ratios outperform stocks with high put-ca...
Stock Screener Option Type Qty % Avg Volume The trade quantity expressed as a percentage of the symbol's average daily option volume. For example, if the symbol trades an average of 500 contracts per day, and this trade is for 100 contracts, the percentage will be 20%. $ Notional Ex-...
To analyze the information in option trading activity for stock market volatility, a sample of 15 stocks with the highest option trading volume is selected. For each stock, it is noted that the trading activities in the put and call option markets have significant explanatory power for stock ...
Define traded options. traded options synonyms, traded options pronunciation, traded options translation, English dictionary definition of traded options. n stock exchange an option that can itself be bought and sold on a stock exchange. Compare traditio
We use data on signed option volume to study which components of option volume predict stock returns and resolve the seemingly inconsistent results in the literature. We find no evidence that trades related to synthetic short positions in the underlying stocks contain more information than trad...
stock prices prior to earnings announcements, as evidenced by smaller deviations between pre- and post-announcement stock prices; (2) no reliable evidence of change in analysts' earnings forecast errors or dispersion; and (3) a substantial increase in the volume of firms' voluntary, forward-...
Prior research generally finds that firms underreport option expense by managing assumptions underlying option valuation (e.g. they shorten the expected option lives), but it fails to document management of a key assumption, the one concerning expected stock-price volatility. Using a new methodology,...
covered option- a put or call option backed by the shares underlying the option call option,call- the option to buy a given stock (or stock index or commodity future) at a given price before a given date put,put option- the option to sell a given stock (or stock index or commodity ...
What Is Optionable Stock? An optionable stock is one where the shares have the necessaryliquidityand volume such that an exchange lists that stock's options for trading. In order for a stock to be optionable, exchanges mandate that certain criteria be met, including a minimum share price, ...