| Article ID: | iaor201522746 |
| Volume: | 6 |
| Issue: | 4 |
| Start Page Number: | 313 |
| End Page Number: | 321 |
| Publication Date: | Dec 1983 |
| Journal: | Journal of Financial Research |
| Authors: | Whiteside Mary M, Dukes William P, Dunne Patrick M |
| Keywords: | investment |
This paper examines the short‐term impact of option listing before and after the moratorium. There is no clear evidence that option trading has an effect on volatility or variability of shares traded daily. However, when the results are evaluated by year of trading, two significant trends can be identified. A trend toward decreased price volatility and increased variability in the number of shares traded daily is shown in the underlying security shortly after option trading begins.