Top Options Products

vix.pngThis list from Henry Schwartz at Trade Alert lists the volume numbers for the top options and top options exchanges for 2007.

A few notable items:

  • 8 of the 17 listed are index products, counting VIX and XLF
  • DIA comes in last on the list
  • AAPL is the top single company options listing, at #5
  • Around 23 million VIX contracts traded last year (the #11 spot). That’s a lot.

Think about this: the theory is that a huge chunk of options bought and sold are done so by fund managers and other big guys who want to protect stock positions. Your equity portfolio gets toppy, so you grab some SPX puts or whatever on a short term basis.

But if that’s your goal, maybe it makes more sense to buy front month VIX calls instead.  You get protection in case of a big selloff, and then some.  So we’re taking bets on whether VIX options will climb from #11 on this list to #6 or higher by next year.

Oh, also check out those exchanges.  CBOE is still the leader at 33% market share, but only barely!  ISE is breathing down their necks at 28%.

[tags] options, exchanges, DIA, VIX, XLF, AAPL, SPX, CBOE, ISE, volume [/tags]

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Jared Woodard specializes in trading volatility as an asset class. With over a decade of experience trading options and other volatility products ... Read More


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