US options volume may break two billion in 2006

Jim Binder, a spokesman for the OIC, said options volume for the year to date currently stood at around 1.9 billion contracts, and could breach 2.0 billion by the end of 2006. Total US options volume exceeded a billion for the first time in 2004. Since 2003, yearly volume growth has averaged 25%.

Options traders speculate the growth is mostly due to new entrants in the market, including more hedge funds, retail investors and institutional brokers. They said new technology had made more complicated options strategies easier to manage for clients, while also encouraging narrower spreads on exchanges. Technology was also a factor behind the apparent success of an industry-wide drive to promote options to the public.

About 90% of the US options contracts traded so far this year are in single-stock equities, with the remainder made up largely of index options.

  • LinkedIn  
  • Save this article
  • Print this page  

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: