This report provides an overview of the utility of single stock and custom basket options in fund management. It is … positions via single stock options and thus help to hedge against underperformance of the fund relative to the benchmark … analysis that helps to quantify the risk associated with a portfolio-underlying mismatch, and discuss how this risk can be …

We examine whether stock-level options information drives mutual fund performance. Our paper is motivated by existing … studies indicating that options prices or implied volatilities predict stock returns. We find that stock-implied volatility … with favorable information outperform other funds. In addition, mutual fund managers overall do not trade on past options …