Options expiration stock price

Please note that Internet Explorer version 8. Please refer to this blog post for more information. This paper presents striking evidence that option trading changes the prices of underlying stocks. In particular, we show that on expiration dates the closing prices of stocks with listed options cluster at option strike prices.

Options Expiration | Everything You Need To Know — tastytrade blog

On each expiration date, the returns of optionable stocks are altered by an average of at least We provide evidence that hedge rebalancing by option market makers and stock price manipulation by firm proprietary traders contribute to the clustering. We thank Joe Levin, Eileen Smith, and Dick Thaler for assistance with the CBOE data, and thank the Office for Futures and Options Research of the University of Illinois at Urbana-Champaign for supporting Sophie Xiaoyan Ni through the Corzine Assistantship and for partial financial support of the Ivy DB data from OptionMetrics.

The suggestions of an anonymous referee were especially helpful in improving the paper.

The comments of Marco Avellaneda, Kerry Back, Dan Bernhardt, Bill Christie, Options expiration stock price Davies, Steve Figlewski, Jeff Harris, Larry Harris, Narasimhan Jegadeesh, Michael Lipkin, Stewart Mayhew, George Pennacchi, Bill Schwert the editorJoshua White and seminar participants at Louisiana State University, Rutgers University-Camden, the Securities and Exchange Commission, the University of Florida, the University options expiration stock price Illinois at Urbana-Champaign, and the University of Iowa are also gratefully acknowledged.

We are responsible for any remaining errors. Journals Books Register Sign in Sign in using your ScienceDirect credentials Username. Forgotten username or password?

Sign butterfly spread call options via your institution OpenAthens Other institution Recent Institutions.

Sign in using your ScienceDirect credentials Username. JavaScript is disabled on your browser. Please enable JavaScript to use all the features on this page.

How Options Expiration Affects Stock Prices - TheStreet

Journal of Financial Economics Volume 78, Issue 1OctoberPages Author links open the author workspace. Opens the author workspace Opens the author workspace Allen M.

University of Illinois at Urbana-Champaign, Champaign, D David Kinley Hall, W. Gregory Drive, Urbana, ILUSA.

united states - What is the effect of options expiration on equity pricing? - Personal Finance & Money Stack Exchange

Abstract This paper presents striking evidence that option trading changes the prices of underlying stocks. Keywords Stock price clustering.

Check if you have access through your login credentials or your institution. Elsevier About ScienceDirect Remote access Shopping cart Contact and support Terms and conditions Privacy policy.

Cookies are used by this site. For more information, visit the cookies page.