Trading call options linked to stock volatility, put options less clear.
The study looked at how trading in the options market affects stock market volatility using daily data from KOSPI 200. They found that unexpected call option trading volume is linked to higher stock volatility, while put option trading volume doesn't show a significant relationship. Informed traders tend to prefer deep in the money, deep out of the money, and at the money options with less than a month to maturity. However, it's harder to determine informed trader behavior with put options.