Study finds strength in options users
27 October 2015 Chicago
Image: Shutterstock
Options users are passionate, active investors who are more likely to increase their options activity than their trading of either stocks or bonds over the next year, according to a new study by Harris Poll.
The Options Industry Council (OIC) published the results and argued they highlighted the industry’s effort to educate investors about the use of listed options are generating positive results.
The OIC is the educational cooperative run by the Options Clearing Corporation (OCC).
Harris Poll conducted the 2015 OIC study of investors online from 2 February to 22 July 2015, polling 964 investors.
Two significant trading volume days were recorded in August by OCC with options trading volume reaching 39.4 million contracts on 21 August and 32 million contracts on 24 August, marking the third and ninth highest volume days.
Options trading volume in 2014 was up 4 percent over 2013, marking the second best volume year in history and the fourth consecutive year options volume passed 4 billion contracts.
According to the study, 85 percent of listed options users consider themselves to be extremely knowledgeable investors compared to 66 percent of non-users.
Additionally, users of listed options are much more likely than non-users to use a wider range of risk management tools, especially exchange-trade funds and investment trusts, American depository receipts, gold, and futures and commodities.
Options users are also more likely to be early adopters of new products, according to the study.
"OIC's mission is to help educate investors on the responsible use of listed options," said Scot Warren, OCC executive vice president of business development and the OIC.
”Due in large part to our educational and outreach programs, investors are becoming increasingly aware that listed options are a versatile financial risk management tool. As a result, investors' use of options has grown dramatically.”
“Total trading volume of listed options in 1995 was 1.1 million contracts—an amount that is surpassed within the first half hour of trading today where the average daily volume exceeds 16 million contracts.”
The Options Industry Council (OIC) published the results and argued they highlighted the industry’s effort to educate investors about the use of listed options are generating positive results.
The OIC is the educational cooperative run by the Options Clearing Corporation (OCC).
Harris Poll conducted the 2015 OIC study of investors online from 2 February to 22 July 2015, polling 964 investors.
Two significant trading volume days were recorded in August by OCC with options trading volume reaching 39.4 million contracts on 21 August and 32 million contracts on 24 August, marking the third and ninth highest volume days.
Options trading volume in 2014 was up 4 percent over 2013, marking the second best volume year in history and the fourth consecutive year options volume passed 4 billion contracts.
According to the study, 85 percent of listed options users consider themselves to be extremely knowledgeable investors compared to 66 percent of non-users.
Additionally, users of listed options are much more likely than non-users to use a wider range of risk management tools, especially exchange-trade funds and investment trusts, American depository receipts, gold, and futures and commodities.
Options users are also more likely to be early adopters of new products, according to the study.
"OIC's mission is to help educate investors on the responsible use of listed options," said Scot Warren, OCC executive vice president of business development and the OIC.
”Due in large part to our educational and outreach programs, investors are becoming increasingly aware that listed options are a versatile financial risk management tool. As a result, investors' use of options has grown dramatically.”
“Total trading volume of listed options in 1995 was 1.1 million contracts—an amount that is surpassed within the first half hour of trading today where the average daily volume exceeds 16 million contracts.”
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