In August 2022, Olympic Steel shifted from an inconsistent short-term debt strategy to a clearly conservative policy, leading to a 22% stock increase and a nearly 50% drop in volatility of volatility (VOV). New research by Dr. Adam Harper of the University of South Alabama, using OptionMetrics’ IvyDB US, shows this is part of a broader pattern: clear, consistent financing signals reduce investor uncertainty. As Dr. Harper notes, “The information embedded in options is essential for gauging market expectations… and OptionMetrics is the most comprehensive and accessible dataset of option-implied information I know of.”
From policy ambiguity to price volatility: the hidden cost of indecision
by