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 … implied volatility spread and subsequent stock return volatility around open-market share repurchase events. We concluded that …

Conventional financial theory considers ex-ante that risk, generally measured by the volatility, has to be … different selection criteria with diverse weighting schemes. Finally, we analyze how is the behavior of equity options on those … equity options with index options. …