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I've spoke to a few people who's jobs are to be on top of these sorts of trades and they said the most interesting part of these trades are that the moves prece
by michaelgrosner2 11y ago
I've spoke to a few people who's jobs are to be on top of these sorts of trades and they said the most interesting part of these trades are that the moves precede the jump in the stock. You look at the market data, the options prices pop before the stock price. This is interesting because the options market is almost by definition slower than stock markets (not just because of the presence of HF firms in the underlying markets, but think of Black-Scholes - one of the inputs to the model is the stock price). Many firms aren't yet prepared for this sort of activity, but they'll plug that hole.