Equity open interest for August reached its monthly peak on August 18 at 64,055,912 contracts, just under the recent record set on July 21, with 65,498,515 contracts. At month-end, equity open interest stood at 59,147,553 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.
"Equity options volume continues at a strong pace ahead of last year," said Paul Stevens, Options Industry Council President. "In the current market, we're seeing investors use options for protection, with strategies such as covered call writing or buying protective puts. The OIC is pleased to provide information on these strategies for investors through its seminars, Web site or through the call center at 1-888-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 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.888options.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 e-mail to options@theocc.com.
