---
title: Option Characteristics and Stock Returns
url: https://www.ml-quant.com/papers/ssrn/4734014/
site: ML-Quant (https://www.ml-quant.com)
updated: 2026-09-26
license: Summaries CC BY 4.0; links go to the original sources
index: https://www.ml-quant.com/llms.txt
identifier: SSRN 4734014
source_url: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4734014
featured: 2024-02-21
citations: unknown
topic: Derivatives & Volatility
---


# Option Characteristics and Stock Returns

The research analyzes options-implied information for predicting stock returns, finding that only a few option characteristics significantly predict returns after controlling for firm characteristics, and these are linked to asset mispricing, future tail return realizations, and short-selling costs.

- Source: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4734014
- Identifier: SSRN 4734014
- Released: 2021-03-08
- First featured: Quant Letter No. 38 (2024-02-21): https://www.ml-quant.com/issues/2024-02-21/
- Citations (Semantic Scholar): not tracked
- Published in: not yet
- Topic: Derivatives & Volatility

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