Insider trading in options markets
In our sample of cash tender offers occurring between andwe find evidence that the options market has become the preferred trading venue for informed traders. Given this result, we analyze individual call option contracts for those tender offer targets with traded options, identifying the one optimal insider contract which maximizes the returns to insiders with perfect knowledge of a pending tender offer. This analysis allows us to test the competing market anticipation and insider trading theories of pre-bid stock price and volume run-ups using the trading patterns of options which should be preferred by insiders and those preferred by speculators. Our individual contract analysis is consistent with both theories as we find trading in both insider-preferred and speculator-preferred contracts drives aggregate call option volume run-ups. However, heavy trading in the optimal insider contract occurs on heavy volume days for all contracts. These results support the notion of Easley, O'Hara, and Srinivas that a substitution effect exists whereby informed traders prefer to trade markets options markets when possible and that insiders will markets their trades within those of speculators. Arnold, Tom and Erwin, Gayle R. Informed Trading in Options Markets Preceding Tender Offer Announcements May Box Charlottesville, VA United States Phone Fax. Birmingham, AL United States Phone School insider Business Birmingham, AL United States Phone Fax. Subscribe to this fee journal for more curated articles on this topic. Insider Trading and the Bid-Ask Spread: A Critical Evaluation of Adverse Selection in Market Making. By Patrick AugustinMenachem BrennerInformed Trading and Option Spreads. By Gautam KaulMahendrarajah NimalendranInsider Trading, Earnings Quality, and Accrual Mispricing. By Mark Vargus and Messod Beneish. The Law and Economics of Insider Trading: Cookies are used by this site. To decline or learn more, visit our Cookies page. This page was processed by apollo3 in 0. Your Account User Home Personal Info Affiliations Subscriptions Trading Papers My Briefcase Sign out. Download this Paper Open PDF in Browser Share: Using the URL or DOI link below will ensure access to this page indefinitely. Tom Arnold University trading Richmond - E. Claiborne Robins School insider Business Gayle R. Erwin University of Virginia - McIntire School of Commerce Lance A. Nail University of Alabama at Options - Department of Finance, Economics, and Quantitative Methods Ted Bos University of Alabama at Birmingham. Abstract In our sample of cash insider offers markets between andwe find evidence that the options market has become the preferred trading insider for informed traders. Arnold University of Richmond - E. Claiborne Robins School of Business email 1 Gateway Drive Richmond, VA United States Phone Fax. Erwin University of Virginia - McIntire School of Commerce email P. Nail Contact Author University of Alabama at Birmingham - Department of Finance, Economics, and Quantitative Methods email Birmingham, AL United States Phone Ted Bos University of Alabama at Birmingham email School of Business Birmingham, AL United States Phone Fax. Download this Paper Open PDF in Browser. Related eJournals Derivatives eJournal Follow. Derivatives eJournal Subscribe to this fee journal for more curated articles on this topic FOLLOWERS. Securities Law eJournal Follow. Securities Law eJournal Subscribe to this fee journal for more curated options on this topic FOLLOWERS. Experimental Studies eJournal Follow. Experimental Studies eJournal Subscribe to this markets journal for more curated articles on this topic FOLLOWERS. Recommended Papers Insider Trading and the Bid-Ask Spread: A Critical Evaluation of Adverse Selection in Market Making By Stanislav Dolgopolov Insider Trading: Informed Trading and Option Spreads Trading Gautam KaulMahendrarajah NimalendranInsider Trading, Earnings Quality, and Accrual Mispricing By Mark Vargus trading Messod Beneish The Options and Economics of Insider Trading: A Comprehensive Primer By Stephen Bainbridge. Eastern, Monday - Friday. Submit a Paper Section Text Only Pages. Quick Links Research Paper Series Conference Papers Partners in Publishing Organization Homepages Newsletter Sign Up. Rankings Top Papers Top Authors Top Organizations. About SSRN Objectives Network Options Presidential Letter Announcements Contact us FAQs. Copyright Terms and Conditions Privacy Policy.
.jpg "insider trading in options markets")
Last year my DD in 7th grade had to meet with a group several times over spring break to complete a joint project.
Although the focus will be primarily on the contemporary United States, we will look.
Accordingly higher levels of nitrogen sulfur and other similar elements which may act as electron donors or acceptors in anaerobic digestion influence on bio-methanation.
But other nations viewed Genghis Khan and his army as a ruthless murderer, while the Mongolians considered Khan as a great military leader.
Therefore, we always try to do this, in this part is more important things.