Badshah, Ihsan Ullah; Koerniadi, Hardjo; Kolari, James W. - In: Journal of Risk and Financial Management 12 (2019) 4, pp. 1-11
The informed options trading hypothesis posits that option prices lead stock prices. In this paper, we extended the research on this hypothesis to open-market share repurchases. Empirical tests showed that the implied volatility spread was not significantly related to buy-and-hold abnormal stock...