Does Option Trading Have a Pervasive Impact on Underlying Stock Prices?

2007 ◽  
Author(s):  
Neil D. Pearson ◽  
Allen M. Poteshman ◽  
Joshua S. White
Keyword(s):  
Stock Prices ◽  
Option Trading

scholarly journals OPSI SAHAM PADA PASAR MODAL DI INDONESIA (STUDI PASAR OPSI SAAT PASAR OPSI MASIH BERLANGSUNG DI BURSA EFEK INDONESIA)

2019 ◽  
Vol 2 (2) ◽  
pp. 300
Author(s):  
Syanti Dewi ◽  
Ishak Ramli
Keyword(s):  
Interest Rate ◽  
Stock Prices ◽  
Stock Price ◽  
Stock Exchange ◽  
Option Price ◽  
Stock Option ◽  
Exchange Market ◽  
Strike Price ◽  
Option Trading ◽  
Put Option

Stock option exchange market is not working anymore in the Indonesian Stock Exchange, using the data option exchange market for the running period 2007-2008, we analyzed the effect of stock price, strike price, time to maturity, volatility and risk- free interest rate on the stock option’s price of listed stock call or put option trading at the Indonesian Stock Exchange during 2007-2008. The results found that the stock price, strike price, time to maturity, volatility and risk-free interest rate are positive significantly affecting the stock option price either the buying option price or the selling option price in Indonesia Stock Exchange 2007-2008 period. While there were no variables that significantly affected the call option during the periode 2007-2008, furthermore stock prices and strike prices significantly affected the put option prices. Time to maturity, Volatility, and risk free interest rate did not significantly affect the put option prices.That is why the stock option exchange market stop since the investor were not sure to the stock option price versus the risk of the volatility, time to maturity, and riskfree rate.

Does Option Trading Have a Pervasive Impact on Underlying Stock Prices?

2020 ◽  
Author(s):  
Sophie X Ni ◽  
Neil D Pearson ◽  
Allen M Poteshman ◽  
Joshua White
Keyword(s):  
Stock Prices ◽  
Stock Price ◽  
Stock Return ◽  
Return Volatility ◽  
Equity Prices ◽  
Option Trading ◽  
Stock Return Volatility ◽  
Market Makers ◽  
Options Trading ◽  
Option Market

Abstract The question of whether and to what extent option trading affects underlying stock prices has been of interest to researchers since exchange-based options trading began in 1973. Recent research presents evidence of an informational channel through which option trading affects stock prices by showing that option market makers’ stock trades to hedge new options positions cause the information reflected in option trading to be impounded into underlying equity prices. This paper provides evidence of a noninformational channel through which option market maker hedge rebalancing affects stock return volatility and the probability of large stock price moves.

Does Option Trading Have a Pervasive Impact on Underlying Stock Prices?

2016 ◽  
Author(s):  
Sophie X. Ni ◽  
Allen M. Poteshman ◽  
Joshua S. White
Keyword(s):  
Stock Prices ◽  
Option Trading

Insider employee stock option trading and stock prices

2012 ◽  
Vol 20 (1) ◽  
pp. 59-79 ◽  
Author(s):  
David G. McMillan ◽  
Manouchehr Tavakoli ◽  
Phillip J. McKnight
Keyword(s):  
Stock Prices ◽  
Stock Option ◽  
Option Trading ◽  
Employee Stock Option

The Effect of Current Ratio and Debt to Asset Ratio on Net Profit Margin and Stock Prices: A Study of Basic Industry and Chemicals Companies

2020 ◽  
pp. 282-294
Author(s):  
Sudirman S ◽  
Muhammad Wahyuddin Abdullah ◽  
Muhammad Obie
Keyword(s):  
Stock Prices ◽  
Stock Exchange ◽  
Secondary Data ◽  
Profit Margin ◽  
Current Ratio ◽  
Industry Sector ◽  
Basic Industry ◽  
Net Profit ◽  
Equity Ratio ◽  
Index Value

This study examined the effect of current ratio and debt to asset ratio on net profit margin and stock prices of the sector basic industry and chemicals companies listed on the Indonesia Stock Exchange in the period 2015-2019. The object of research was the stock prices of companies in the Basic Industry and Chemicals sector, which have been published through the official website of the Indonesian capital market. It was used secondary data derived from the monthly statistics, including Current Ratio data, Net Profit Margin, Debt to Asset Ratio, and data on closing prices for the period 2015-2019. In analyzing data, it was used path analysis of secondary data obtained from the basic industry sector financial statements of 60 companies. The company's performance in this sector is considered quite good when seen from the movement of the index value in the last five years. The results show that direct current ratio had a positive and significant effect on the net profit margin, and the debt to equity ratio did not significantly influence the net profit margin. The current ratio has a positive and significant effect on stock prices, and the debt to equity ratio has a negative and not significant effect on stock prices. In contrast, the net profit margin has a significant effect on stock prices in the basic industry sector companies on the Indonesia Stock Exchange. Indirectly the current ratio has a positive and significant effect on stock prices. In contrast, the debt to asset ratio has a negative and not significant effect on the company's stock prices in the basic industry sector on the Indonesia Stock Exchange.

An Empirical Investigation of Factors Affecting Stock Prices in Vietnam

2014 ◽  
pp. 74-89 ◽  
Author(s):  
Vinh Vo Xuan
Keyword(s):  
Exchange Rates ◽  
Crude Oil ◽  
Foreign Exchange ◽  
Stock Prices ◽  
Global Financial Crisis ◽  
Oil Prices ◽  
Foreign Exchange Rates ◽  
Factors Affecting ◽  
Crude Oil Prices ◽  
Before And After

This paper investigates factors affecting Vietnam’s stock prices including US stock prices, foreign exchange rates, gold prices and crude oil prices. Using the daily data from 2005 to 2012, the results indicate that Vietnam’s stock prices are influenced by crude oil prices. In addition, Vietnam’s stock prices are also affected significantly by US stock prices, and foreign exchange rates over the period before the 2008 Global Financial Crisis. There is evidence that Vietnam’s stock prices are highly correlated with US stock prices, foreign exchange rates and gold prices for the same period. Furthermore, Vietnam’s stock prices were cointegrated with US stock prices both before and after the crisis, and with foreign exchange rates, gold prices and crude oil prices only during and after the crisis.

Mutual Fund Herding and the Impact on Stock Prices

CFA Digest ◽  
1999 ◽  
Vol 29 (4) ◽  
pp. 48-49
Author(s):  
H. Kent Baker
Keyword(s):  
Mutual Fund ◽  
Stock Prices ◽  
The Impact
Sign in / Sign up

Export Citation Format

Share Document