Informed Options Trading Before Corporate Events

Autor:	Patrick Augustin, Marti G. Subrahmanyam
Rok vydání:	2020
Předmět:	Economics and Econometrics business.industry Mergers and acquisitions Accounting Insider trading business Finance
Zdroj:	Annual Review of Financial Economics. 12:327-355
ISSN:	1941-1375 1941-1367
DOI:	10.1146/annurev-financial-012820-033052
Popis:	There is sufficient evidence in the popular, legal, and financial literatures that informed options trading ahead of scheduled and unexpected corporate events is pervasive. In this review, we piece together the extant evidence on this topic into a cohesive picture, which includes abnormal activity ahead of announcements of earnings, mergers and acquisitions, as well as numerous other corporate events. We also discuss the more limited evidence on informed trading in other derivatives markets, such as credit default swaps. In addition, we characterize the impact and features of illegal insider trading and insider trading networks. We also provide a brief overview of the legal framework in the United States concerning legal and illegal insider trading to emphasize the challenges associated with identifying informed options trading. We end with our suggestions regarding future research opportunities in this broad topic.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::c14d3d85ad74537076690ca55f220d11 https://doi.org/10.1146/annurev-financial-012820-033052 Zobrazit plný text záznamu