All books

Professional

Apps About Coach Log in Start reading

Quantitative Finance · Glossary

What is Informed options trading?

Definition 15.1 Strategies I: Equities and Futures · Chapter 15 — Options-Implied Signals for Stocks

Informed options trading is trading in a stock’s options by investors with private information about the stock, who choose options over the stock for their leverage and, for bad news, to avoid the costs and constraints of short selling; their demand moves the prices and volumes of the options they buy before the information reaches the stock.

Read in context →