Institutional Investor (January 4)
2021/ 01/ 04 by jd in Global News
Researchers have uncovered “striking evidence of pre-disclosure spikes in options trading.” They “investigated informed trading activity in equity options prior to firms’ cybersecurity breach disclosures. We found pervasive directional options activity, consistent with strategies that yield abnormal returns to investors with private information.” There is a clear “cost of disclosure, and delayed reporting of breaches creates informed trading opportunities.”
Tags: Breach, Cybersecurity, Equity, Evidence, Options, Options trading, Pre-disclosure, Researchers, Spikes
