OIC: Options trading rises over year, despite dip in November

Option contracts traded in 2014 are on track to deliver the second highest volume year ever, according to the Options Industry Council (OIC).

OIC reported that 294,770,356 options contracts were traded in November, down 6.26% year on year (314,465,376 contracts).

Year-to-date trading volume stood at 3,910,760,808 contracts, up 3.16% compared with the 3,791,066,303 contracts traded in the same period last year. The OIC also reported an average daily volume of 15,514,229 contracts, 1.33% less than last November’s 15,723,269 contracts.

Equity options volume including options on individual stocks and exchange-traded products were up year to date with 3,526,952,540 contracts traded, which is 2.65% more than the 3,435,868,801 contracts traded at the same point last year.

Equity options for the month came in at 269,965,859 contracts, 6.23% less than last November when 287,887,380 contracts were exchanged.

“ETFs make up quite a good part of the market,” a market source told SRP. “ETF growth is a pattern that we recognise.”

Average daily volume for equity options in November came in at 14,208,729 contracts, off last year’s 14,394,369 contracts by 1.29%.

The OIC also reported an increase of 21.1% in the volume of equity options with 436,855,058 contracts exchanged in October compared with 360,729,625 contracts for the same period a year ago.

Equity options volume on average each day in October was 18,993,698 contracts, up 21.1% compared with 15,683,897 contracts for the same month last year.

Year-to-date equity options volume through October stood at 3,256,986,681 contracts whereas at the same point last year 3,147,981,421 contracts were traded, representing a 3.46% increase.