We show evidence of a liquidity searching behaviour of informed investors in option listings, which was also found by … find that the option bid-ask spread may be still a good proxy for informed trading, despite of the liquidity searching … traders avoid trading in initial periods after listing dates due to the low liquidity environment), which is steeper for …

, while also focusing on issuers' hedging costs. We evaluate more than 396,000 single stock discount certificates on an …-related, i.e. dividends of the underlying, issuers' credit risk, lifecycle effect and competition, whereas hedging costs and … risks are economically less important. However, initial hedging costs are also priced into the premium in the case of large …