In the year 2001, CBOE established several new volume records. On April 18, an exchange-wide single-day volume record was established, when 2,726,267 contracts traded. A single-day equity volume record was set on January 19, when 2,196,769 contracts traded. Exchange-wide open interest reached an all-time year-end high of 81,906,961 contracts at year-end, 54% higher than the previous record set at the close of 2000 when open interest stood at 53,264,239 contracts. Average daily volume was 1,236,571 contracts in 2001.
Indexes show strongest growth in 2001
Strong growth in index options trading led gains this year at CBOE as total index volume reached 74,018,725 contracts (33,973,707 calls and 40,045,018 puts) traded, a 55% increase over year-ago levels of 47,731,703 contracts (21,005,985 calls and 26,725,718 puts) traded. At the close of 2001, open interest in index options trading stood at 8,012,784 contracts; this was 142% higher than the close of trading last year, when open interest stood at 3,317,081 contracts traded.
The S&P 500 (SPXTM) index option led index trading at CBOE, with 22,829,042 contracts traded, a 4% increase over 2000's total of 21,995,967 contracts traded. The Nasdaq-100 Index Tracking StockSM (QQQ) totaled 20,366,101 contracts traded by year end. CBOE began trading the QQQ on February 27, 2000. Trading in options on the Dow Jones Industrial AverageSM (DJX) also grew dramatically in 2001, totaling 8,987,456 contracts traded, an increase of 139% over 2000's total of 3,763,077 contracts.
Equity LEAPS see record volume in 2001
Reflecting continuing customer demand for longer-term option investment strategies, new records were established in CBOE equity LEAPS products. Trading volume in equity LEAPS increased to a record 21,068,576 contracts (13,839,764 calls and 7,228,812 puts), an increase of 15% over the previous record of 18,320,847 contracts set in 2000. Average daily volume in equity LEAPS was 84,954, compared to the 2000 level of 72,702 contracts. Open interest in equity LEAPS stood at a year-end record 17,881,440 contracts at the close of 2001, a dramatic 94% increase over the previous year-end record set at the close of 2000 when open interest stood at 9,220,251 contracts.
Stock option volume at year end totaled 232,611,685 contracts (146,696,595 calls and 85,915,090 puts), a decline of 17% from last year's record level of 278,585,728 contracts (187,771,263 calls and 90,814,465 puts). Open interest in stock options stood at a year-end record of 73,887,799 contracts (the equivalent of 7.39 billion shares of stock); this was 48% higher than the previous year-end record set at the close of 2000 when open interest stood at 49,944,375 contracts.
In 2001 CBOE listed 372 new option classes, bringing the total number of stock option classes listed at CBOE to 1,491. The ten most active classes in 2001 based on average daily volume were: Cisco Systems, Inc. (CSCO), Microsoft Corp. (MSFT), General Electric Company (GE), Intel Corporation (INTC), International Business Machines Corp. (IBM), AOL Time Warner, Inc. (AOL), Oracle Corp. (ORCL), EMC Corporation (EMC), Citigroup, Inc. (C), and Dell Computer Corp. (DELL). Additionally, 9 new indexes and exchange traded fund products were added in 2001.
Chairman and CEO William J. Brodsky comments
CBOE Chairman and CEO William J. Brodsky comments: "2001 was a year of rapid change and unexpected challenge in the options industry and the U.S. financial markets. Yet, in the face of unprecedented competition, CBOE experienced the second highest volume year in its 28-year history. It did so by looking to the future."
"In May, CBOE, Chicago Mercantile Exchange Inc. and Chicago Board of Trade announced the creation of a historic joint venture to trade single stock futures contracts. In October, further enhancing our reputation as one of the world's most technologically advanced trading environments, we launched CBOEdirect, a revolutionary new screen-based trading system that offers investors access to extended-hours trading. Additionally, we responded to meet investor demand by introducing several new retail-friendly products, including the QQQ, now one of our two most actively traded indexes. By enhancing the productivity of our trading floor through new systems and providing investors with attractive new products, we strengthened our competitive edge and maintained our position as the world's preeminent options marketplace."
"The events of September 11 challenged all Americans and touched many of us in the financial markets. As we came together as a nation, so did our financial institutions. We look to the future with great resolve and optimism."
December index volume up 24%
Index options led gains in December, with total index option volume totaling 4,871,069 contracts (1,984,260 calls and 2,886,809 puts), an increase of 28% over the year-ago total. CBOE total exchange-wide volume totaled 20,299,860 options contracts (11,925,040 calls and 8,374,820 puts) in December, a decline of 17.5% over the year-ago total. For the month, a total of 15,424,385 stock options contracts (9,939,124 calls and 5,485,261 puts) traded. Average daily volume in December was 1,014,993 contracts.
CBOE, the world's largest options marketplace and the creator of listed options is regulated by the Securities and Exchange Commission (SEC). For additional information about the CBOE and its products, access the CBOE site on the World Wide Web at http://www.cboe.com.
