Chapter 1 What’s That Got To Do With The Price of Eggs -- Chapter 2 Disconnections -- Chapter 3 Chart Watching.-Chapter 4 Higgling -- Chapter 5 The Human Factor -- Chapter 6 The Intent of One, The Intentions of Two -- Chapter 7 The Mystery of Manipulation -- Chapter 8 Banging The Close.

We characterize how informed investors trade in the options market ahead of corporate news when they receive private, but noisy, information about (i) the timing of the announcement and (ii) its impact on stock prices. Our theoretical framework generates a rich set of predictions about the...

We analyze how informed investors trade in the options market ahead of corporate news when they receive private, but noisy, information about the timing and impact of these announcements on stock prices. We propose a framework that ranks options trading strategies (option type, maturity, and...