OIC Announces Annual Volume Sets New Record
The Options Industry Council (OIC) announced that 221,367,212 total options contracts were traded in December representing a 6.69 percent decline compared to December 2007 volume.
Meanwhile, a new annual volume record was set in 2008 with a total of 3,582,572,581 contracts trading, surpassing 2007’s record by 25.14 percent. Equity options volume reached 3,284,761,345 contracts, exceeding the 2,592,102,961 total equity options volume contracts traded in 2007 by 26.72 percent.
The Options Clearing Corporation (OCC) also reported these volume highlights for the month of December:
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December equity options volume was 203,530,235 contracts, a 6.89 percent decrease from 218,580,913 contracts in Dec. 2007.
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December average daily equity options volume was 9,251,374 contracts vs. 10,929,046 contracts in December 2007, a 15.35 percent decrease.
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Month-end open interest for December 2008 was 251,616,499 contracts vs. December 2007 with 281,630,825 contracts, a 10.66 percent decrease.
A Review of 2008 Records
In addition to hitting new annual volume records, these records were set during 2008.
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Total options monthly trading volume record:
October experienced the highest trading volume reached in a single month with 375,934,882 contracts changing hands.
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Highest single trading day in 2008 for total options:
September 18 with 30,006,663 contracts
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Total Volume Milestone:
October 20 marked the first time in history total options volume surpassed the 3 billion contracts in a year.
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Average daily equity options volume:
12,983,246
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Average daily total options volume:
14,160,366
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Options Premium:
$1.9 trillion, up 43 percent over 2007; premium is the price paid to buy an option.
OIC is an industry cooperative funded by the American Stock Exchange, Boston Options Exchange, Chicago Board Options Exchange, International Securities Exchange, NASDAQ Options Market, NASDAQ OMX PHLX, NYSE Arca, and The Options Clearing Corporation. OIC was formed in 1992 to educate investors and their financial advisors about the benefits and risks of exchange-traded equity options.
FYI
Tokyo Stock Exchange, Inc. (TSE) and The Options Industry Council (OIC), announced that they have entered into a licensing agreement and are working on the development of a program aimed at Japanese investors.
The TSE will introduce its new trading platform, “Tdex+,” for option contracts in July. This new program will enhance liquidity in the TSE options market while providing greater investor accessibility to the options market. The licensing agreement gives the TSE the ability to connect Japanese investors with an array of high quality educational materials on options trading, which is a valuable first step for investors.
