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The Options Industry Council (OIC), the educational cooperative run by OCC, the world’s largest equity derivatives clearing organization, and the U.S. options industry, today released the results of a new study conducted by Harris Poll that shows that industry efforts to educate investors about the use of listed options are generating positive results.
Harris Poll conducted the 2015 OIC Study of Investors online from February 2 through July 22, 2015, among 964 investors. The study found that options users are passionate, active investors who are more likely to increase their trading of options than their trading of either stocks or bonds over the next year. A lack of understanding or knowledge is the major stumbling block preventing non-users from trading options now.
“OIC’s mission is to help educate investors on the responsible use of listed options,” saidScot Warren, OCC Executive Vice President of Business Development and OIC. “Due in large part to our educational programs and outreach, investors are becoming increasingly aware that listed options are a versatile financial risk management tool. As a result, investors’ use of options has grown dramatically. Total trading volume of listed options in 1995 was 1.1 million contracts – an amount that is surpassed within the first half hour of trading today where the average daily volume exceeds 16 million contracts.”
Options trading volume in 2014 was up 4 percent over 2013, marking the second best volume year in history and the fourth consecutive year options volume passed 4 billion contracts. Also, in August 2015, two top ten trading volume days were recorded with options trading volume reaching 39.4 million contracts on August 21 and 32 million contracts on August 24, marking the third and ninth highest volume days.
According to the study, 85 percent of listed options users consider themselves to be extremely knowledgeable investors compared to 66 percent of non-users. Additionally, users of listed options are much more likely than non-users to use a wider range of risk management tools, especially ETFs/investment trusts, ADRs, gold and futures/commodities. Furthermore, they are more likely to be early adopters of new products.
OIC sponsored this study by Harris Poll, as well as similar studies every five years since 1995, to better assess the interest level, knowledge and use of listed options by investors. This helps OIC better direct its listed options education efforts with investors on behalf of the listed options industry.
To access this study, visit: http://www.optionseducation.org/harris_study_2015.html
