This paper investigates the behavioral biases in the corporate bond market through the cross-section association between retail and institutional trades and corporate bond returns. The study finds that bonds heavily bought by retail investors in one month underperform in the next month relative...

By extending Kumar, Ruenzi and Ungeheuer (2018), we examine whether the attention-induced overpricing spills over from the stock market to the options market. While they find an increasing buying pressure from retail investors when the stock achieves an attention-grabbing status in the form of a...

We show that option traders suffer from the anchoring effect induced by the stock price’s 52-week high or low. Specifically: 1) trading of all options decreases as the stock price approaches its 52- week high or low; 2) the buy-sell imbalance for calls decreases and that for puts increases as...