July equity options volume hit 50,540,499 contracts, surpassing last July's total of 33,862,599 contracts by 49%. Average daily equity volume in July was 2,527,025 contracts, a 57% increase over the 1,612,505 contracts traded in July 1999. Year to date cleared equity contract volume is 380,151,401, which is 62% higher than the 234,204,077 contracts cleared during the same time in 1999.
"The new record in open interest suggests to us that more investors are considering options as a long-term investing tool, " said Paul Stevens, Options Industry Council President. "We hope that investors will continue their options education and utilize the flexibility and protection that options can provide for both short-term and long-term investment goals."
An equity option is the right but not the obligation to either buy or sell 100 shares of stock at a predetermined price (strike price) on or before a fixed date (expiration date).
The Options Industry Council (OIC) is a non-profit organization founded in 1992 by the nation's securities options exchanges to provide investor education about equity options. Today, its members include The American Stock Exchange, Chicago Board Options Exchange, Pacific Exchange, Philadelphia Stock Exchange and The Options Clearing Corporation. OIC's free educational programs include: an educational Web site at www.optionscentral.com, evening seminars throughout the continental United States and Canada, instructional videos, educational brochures and interactive software. More information on these resources is available by visiting the Web site, calling 1-888-OPTIONS, or sending an e-mail to options@theocc.com.
