DERIVATIVES

Risks of Short-dated Options Order Flow

Posted on December 30, 2024 By Harbourfront Technologies

Subscribe to newsletter Options, particularly short-dated ones, are gaining popularity among retail traders, with their trading volume increasing significantly. While some research argues that short-dated options do not impact the market, certain market practitioners hold opposing views. Reference investigated the risks associated with short-dated …

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RISK MANAGEMENT

Illiquidity Premium in the Bitcoin Options Market

Posted on December 10, 2024 By Harbourfront Technologies

Subscribe to newsletter Sometimes, investors come across trading opportunities that offer outsized returns, but they may not fully understand the risks they are taking on. These risks can include operational risks, counterparty credit risks, or hidden optionality within a financial note. Reference examines the …

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TRADING

Momentum in the Option Market, Part 4-Intraday Case

Posted on January 3, 2025 By Harbourfront Technologies

Subscribe to newsletter Momentum in the options market is an emerging and active area of research. For example, Reference demonstrated that delta-hedged straddle positions exhibit momentum, where firms with strong option performance over the past 6 to 36 months are likely to experience high …

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Latest Post

VIX Manipulation: Evidence from SPX Options and Market Data

Posted on December 26, 2024 By Harbourfront Technologies

Subscribe to newsletter Market manipulation refers to intentional actions taken to distort the normal functioning of financial markets, often to benefit specific individuals or entities at the expense of others. These actions can include spreading false information, rigging prices, or …

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