This paper analyzes trading records of online retail bank investors to examine whether attention-type events dominate return feedback strategies in explaining individual investors' stock option trading decisions. We show that although individual investors are net buyers of common stock on...

This paper investigates the motive of option trading. We show that option trading is mostly driven by differences of opinion, a finding different from the current literature that attempts to attribute option trading to information asymmetry. Our conclusion is based on three pieces of empirical...

Options are most often regarded as insurance against the price movements in the underlying stock or an index. It is a right to exercise the holders desire to buy (CALL) or sell (PUT). These options are priced based on the Holy Grail kind of formulae called ‘Black-Scholes' model. This logic...

This study adopts a unique dataset that includes the complete history of transactions in the Taiwan options market to investigate the misreaction patterns for marketwise observations and the transactions of four different categories of investors in the high-frequency framework. Using the results...