Does activity in equity derivatives play a role in the price discovery process of the underlying stocks? And does the flow of information about the stock drive the dynamics of its option volume distribution and the associated return predictability? Given the current economic environment, more than ever traders are looking to the options market to try to glean information. New research offers interesting insights on what this data might reveal and how it can be used.
What Can Moneyness in Options Trading Tell Us About Investing?
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