June equity options volume was 50,867,008 contracts, a 60 percent increase over the 31,892,516 contracts traded in June 1999. Open interest at the end of the month stood at 56,390,780 open contracts. Equity open interest is the total number of options contracts not yet exercised or allowed to expire and is one indication of longer-term investing in equity options. Average daily equity volume in June was 2,312,137 contracts compared to 1,449,660 contracts in June 1999.
"We're encouraged that investors are taking the time to learn more about equity options and are discovering strategies to use them wisely. For example, in the current market, equity options are a viable tool that investors can use to hedge risk, " said Paul Stevens, OIC. "We hope that more and more investors take advantage of OIC's Web site or the new 1-888-OPTIONS call center which provide expert educational resources on equity options."
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.
